Business Insurance North Carolina

Posted by by Aaron Hurd 13 Min Read
Business Insurance North Carolina
With over 10 million people living in North Carolina, many work for small businesses. In fact, almost 98% of businesses in the state are small, providing jobs for 46% of the private workforce. On our blog, you’ll discover all you need to know about protecting your business, from key insurance tips to the best business insurance providers in North Carolina. Let us guide you in securing the right coverage for your business’s future.

What is business insurance?

Business insurance protects businesses from financial losses due to risks like property damage, legal liability, employee-related risks, and other unexpected events. It helps businesses recover from these incidents by covering costs such as repairs, legal fees, medical expenses, and lost income. Depending on the type of policy, business insurance can safeguard various aspects of a business, including its property, employees, and operations.

What is business personal property insurance?

Business personal property insurance is a type of coverage that protects the physical assets owned by your business. This includes items like office furniture, computers, inventory, equipment, and supplies. If these items are damaged, destroyed, or stolen due to covered events like fire, theft, or natural disasters, business personal property insurance helps cover the cost of repair or replacement. This insurance is essential for businesses to protect their valuable assets and ensure they can continue operating smoothly even after an unexpected loss.

What are typical business owners’ insurance rules for canceling?

Typical business owners’ insurance cancellation rules usually include the following guidelines:

  1. Notice Period: Insurers often require a certain notice period before cancellation, usually 30 days, to inform the insurer of your intent to cancel the policy.
  2. Refund of Premiums: If you cancel your policy before the term ends, you may be entitled to a refund of any unused premiums. The refund may be prorated, meaning you’ll get back a portion of the premium for the remaining time.
  3. Written Request: Cancellation generally requires a written request. This formal notice can be submitted via mail, email, or sometimes through the insurer’s online portal.
  4. Cancellation Fees: Some policies may include a cancellation fee if you terminate the policy early. This fee is deducted from any refund due to you.
  5. Minimum Earned Premium: Some policies have a minimum earned premium clause, which means a certain portion of the premium is non-refundable, even if you cancel early.
  6. Automatic Renewal: Some business insurance policies automatically renew at the end of the term. If you intend to cancel, make sure to do so before the renewal date to avoid being charged for another term.
  7. Contractual Obligations: If your business is contractually obligated to carry insurance (e.g., for a lease or loan), canceling the policy could have legal or financial consequences.

These rules can vary depending on the insurance company and the specific policy, so it’s always a good idea to review your policy terms or speak directly with your insurer.

Key Business Insurance Options Available in North Carolina

General Liability Insurance North Carolina

Liability Insurance is essential for business owners in North Carolina. General liability insurance provides protection against claims that your business is responsible for incidents such as harming someone’s reputation, causing property damage, or causing bodily injury to others.

North Carolina Business Owner’s Policy

A Business Owner’s Policy (BOP) combines together business property and business liability insurance into one comprehensive policy for North Carolina business owners. This policy can protect your NC business from expenses related to fire damage, vandalism, and other covered incidents. Additionally, a BOP includes business income insurance, which helps replace lost income if your business needs to temporarily shut down due to a covered loss. Businesses in North Carolina can customize a BOP by adding optional coverages like data breach insurance. You might consider getting a BOP if, for example:
  • Your business has inventory that could be damaged or stolen, such as digital assets, customer information, office furniture, equipment, cash, or other stock.
  • Your business owns or rents a physical space, like a storefront, office, or any other workplace.
  • Your business risks being sued, such as if a customer gets injured on your premises.

North Carolina Commercial Flood Insurance

Commercial Flood Insurance helps safeguard your North Carolina business from damage caused by floodwaters. This type of insurance not only covers your physical assets and contents but can also help protect your business’s location. A commercial flood insurance policy is designed to cover the costs associated with flood damage to any part of your business, including floors, walls, ceilings, fixtures, furniture, and inventory. Even if you’re in an area not typically prone to flooding, you should consider commercial flood insurance if, for example:
  • Your business is located in an area with cold winters and warm springs. Rapidly melting snow is a common cause of flooding.
  • Your area experiences moderate to heavy rainfall year-round. Even normal rainfall can lead to clogged municipal drains, causing water to overflow into your business and result in flood damage.

North Carolina Workers’ Compensation Insurance

The North Carolina Workers’ Compensation Act mandates that all businesses in NC with three or more employees, whether they are corporations, sole proprietorships, limited liability companies, or partnerships, must have workers’ compensation insurance or qualify as self-insured employers to provide workers’ compensation benefits to their employees. Workers’ Compensation Insurance benefits employees who suffer work-related injuries or illnesses, covering lost wages, medical care, and more. It can also provide financial support to the family of a worker who has passed away. Workers’ comp helps protect your North Carolina business in situations such as:
  • An employee trips over a rug in your office, gets injured, and needs to visit the emergency room, followed by weeks of recovery.
  • An employee hurts her back while lifting a box of office supplies and needs medical attention, medication, and ongoing physical therapy.
  • An employee returning from a client visit at the lake is involved in a car accident, requiring an ambulance ride to the hospital and medical treatment.

North Carolina Minimum Business Insurance Requirements

The North Carolina Workers’ Compensation Act requires all businesses with three or more employees to have workers’ compensation insurance or become self-insured to cover workers’ compensation benefits for their employees. Businesses with one or more employees involved in radiation-related activities must have workers’ compensation coverage. If you hire a subcontractor who lacks workers’ compensation insurance, you could be held responsible for any work-related injuries their employees suffer, regardless of how many employees you or the subcontractor have. Failing to carry workers’ compensation insurance can lead to severe financial penalties, misdemeanor or felony charges, and even imprisonment.

Best business insurance providers in North Carolina

Safeinsurance used the following weights to find the cheapest general liability insurance in North Carolina:

  • Affordability for LLCs: 50%
  • Affordability for sole proprietors: 50%
Company SafeInsurance Score Monthly Cost Without Employees Monthly Cost With 20 Employees
Nationwide 90 $32 $32
biBERK 89 $23 No Data
Next 89 $25 $25
The Hartford 87 $30 $44
Thimble 87 $22 $53
Hiscox 84 $29 $55

Cheapest General Liability Insurance in North Carolina

Next provides the most budget-friendly general liability insurance in North Carolina, with an average monthly cost of $25 for both LLCs and sole proprietors.

Conclusion

Securing the right business insurance in North Carolina is essential for protecting your business from unforeseen risks and ensuring its long-term success. With nearly 98% of the state’s businesses being small enterprises, having the appropriate coverage can make the difference between recovery and financial ruin in the face of unexpected events. Whether it’s safeguarding your assets with business personal property insurance or ensuring compliance with North Carolina’s workers’ compensation laws, the right insurance policy tailored to your needs is vital. By choosing the best providers and understanding your options, you can confidently protect your business and focus on growth.

FAQs

Can I get business insurance without an LLC?

Yes, you can get business insurance without forming an LLC. Business insurance is available to sole proprietors, partnerships, and other business structures. The type of insurance you need will depend on your specific business activities, but you don’t need an LLC to be eligible for coverage.

Does business insurance cover lawsuits?

Yes, business insurance can cover lawsuits, depending on the type of policy you have. General liability insurance covers legal costs if your business is sued for injury, damage, or advertising issues. Other insurances, like professional or product liability, protect against specific business risks. Always check your policy details to understand what types of lawsuits are covered.

Is simply business insurance legit?

Yes, Simply Business Insurance is a legitimate insurance provider. As of Trustpilot, Simply Business Insurance has a 4.3-star rating. Simply Business is an online platform that offers small business insurance, connecting business owners with various insurance carriers to find coverage that suits their needs. The company is well-established and has operated for several years, serving many small businesses. They offer clear policies and a simple online process, making it easy for business owners to get coverage. As with any insurance provider, it’s always a good idea to read reviews, check their ratings with agencies like the Better Business Bureau (BBB), and carefully review policy details before purchasing.

Can you cancel business insurance at any time?

Yes, you can typically cancel business insurance at any time, but there are a few things to consider:

  1. Notice Period: Most insurance companies require a notice period before cancellation, usually around 30 days. This means you need to inform your insurer in advance of your intention to cancel.
  2. Cancellation Fees: Some policies may include cancellation fees, especially if you cancel before the policy term ends. These fees can reduce the amount of any refund you might receive.
  3. Refund of Premiums: If you cancel your policy early, you may be entitled to a refund of any unused premiums. The refund is usually prorated based on the time remaining on your policy.
  4. Contractual Obligations: If your business has contracts that require you to maintain insurance (such as a lease or loan agreement), canceling your policy could have legal or financial consequences.
  5. Coverage Gaps: Canceling your insurance could leave your business exposed to risks. Before canceling, you must ensure you have alternative coverage in place if needed.

Always review your policy terms or speak with your insurance provider to understand the specific cancellation process and any potential implications.

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Aaron Hurd
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Aaron Hurd is a contributor to safeinsurance, specializing in miles, points, travel, credit card rewards, and personal finance. His work has been featured in publications such as The Points Guy, CreditCards.com, NerdWallet, Forbes Advisor, Rolling Stone, and Robb Report. Aaron balances his time between freelance writing and running a strategic consultancy. Aaron has a strong passion for travel and personal finance, which he cultivated during his studies at Iowa State University. He combined his expertise in credit card rewards with a resale business to help fund his education. After earning his MBA from the University of Michigan, he used his knowledge of miles and points to travel across five continents, including unique journeys on the Trans-Siberian Railroad and through Uzbekistan, Kyrgyzstan, and China.
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