In the Green Mountain State, there are certain insurance requirements that most small business owners must meet. However, the state's requirements may not be enough to keep your business protected against your biggest risks. For that reason, it's important to consider additional coverage options as part of your risk management plan. Learn more about the common types of insurance for small businesses in Vermont.
Mandatory Insurance Requirements for Small Businesses in Vermont
If you have at least one employee on a full or part-time basis, Vermont requires you to carry workers' compensation insurance. Since Vermont is in such close proximity to other states in New England, you may conduct business across state borders or you may employ workers who live in other states. It's important to remember to include all of your employees under your workers' compensation coverage, regardless of whether they reside in VT or not. This crucial type of policy may provide certain benefits to an employee who becomes ill or suffers a workplace accident or injury. Workers' comp can help to alleviate the costs associated with the following claims:
- Medical expenses
- Partial lost wages
- Job retraining
As a small business owner, securing workers' compensation can also help protect you from out-of-pocket costs for a claim related to a workplace injury.
Commercial Auto Insurance
If you own, lease, or otherwise use vehicles to conduct business in Vermont, you're required to have adequate commercial auto insurance coverage. In most cases, if you or an employee is involved in an accident while driving a company vehicle, this type of policy may cover the following exposures:
- Collision coverage: compensation for damage to your vehicle, regardless of fault
- Medical expenses: medical care coverage for those injured in an accident, regardless of fault
- Comprehensive coverage: compensation for damage to your vehicle from non-collision events, such as falling objects and vandalism
Other Small Business Insurance Options to Consider
While the following types of insurance aren't necessarily mandatory for every business in Vermont, each policy could provide essential coverage that your specific business could use.
General Liability Insurance
Mistakes, accidents, workplace errors, and injuries can lead to potential lawsuits. General liability insurance helps to safeguard your small business if you're sued by a third-party, helping to cover the costs of legal expenses and attorney fees.
Employment Practices Liability Insurance
While general liability insurance may help to shield your business against third-party lawsuits, it most likely won't protect you if a past or current employee brings an accusation against you for wrongful termination, harassment, or discrimination. There's where employment liability insurance can help.
A businessowners policy can help you recover financially if your business is interrupted because of significant property damage or other covered misfortunes. It combines the benefits of general liability and commercial property insurance into one policy.
Get Small Business Insurance Solutions for your Vermont Small Business
No matter what line of work you're in or how many risks you're exposed to on a regular basis, AmVenture is here to help you find small business insurance solutions. Call today to speak with one of our knowledgeable representatives, or visit us online today.
About Small Businesses in Vermont
According to the Small Business Administration, Vermont's economy grew at an annual rate of 1.4% in the second quarter of 2016. This was faster than the rest of the United State's growth rate of 1.2%. In November 2016, the state's unemployment rate of 3.2% was also below the national average of 4.6%.