A Quick & Easy Guide to Small Business Insurance Options in North Carolina

Navigating the world of small business insurance can feel overwhelming, but it doesn’t have to be. Whether you’re launching a new venture or growing an established company, the right insurance coverage helps you manage risk and protect your future.

If you’re starting a small business in North Carolina, you’ll need to decide what insurance you’ll be purchasing. While North Carolina only requires businesses to purchase commercial auto insurance (for businesses that own vehicles) and workers’ compensation (for businesses with three or more employees), you can find a few other types of insurance plans that can be well worth the cost.
As you try to reduce your business’s financial risk, you should be aware of the primary types of small business insurance in North Carolina and what businesses they’re best for.

The 9 Types of Small Business Insurance in North Carolina

From general liability insurance and workers’ compensation to business owners’ policies and commercial auto insurance, you have lots of small business insurance options. Before you make a decision on which plan you need, take a moment to review the nine most common types of small business insurance plans in NC below:

1. General Liability Insurance

General liability insurance is the most popular type of small business insurance in North Carolina since it protects companies from common liability issues. For example, personal injury by a third party, property damage, and bodily injury are typically covered by general liability insurers. If your business has this insurance, you’ll be covered if you or an employee damages property that isn’t owned by your company or if a non-employee gets hurt.

2. Commercial Property Insurance

Another very common type of small business insurance in North Carolina is commercial property insurance. This type of insurance policy protects your equipment and property from loss, damage, or theft, making it a good choice for any company with expensive property and equipment. However, if your business primarily relies on remote workers, you may be able to skip this insurance without taking on much risk.

3. Business Owner’s Policy

If you plan to purchase general liability and commercial property insurance, you might want to consider a Business Owner’s Policy (BOP). This type of insurance policy combines general liability and commercial property insurance. Typically, the rate for BOP will be cheaper than if you bought commercial property and general liability insurance separately, making it a cost-effective option for companies that need both.

4. Workers’ Compensation Insurance

Due to the North Carolina Workers’ Compensation Act, businesses that have three or more employees must be certified as self-insured or have workers’ compensation insurance. These requirements apply to limited liability companies, partnerships, corporations, and sole proprietorships. If you select the self-insured option, your business will have to assume all financial responsibility for its employees’ workers’ comp claims and will have to manage the claims process yourself.
Since workers’ comp claims can be quite costly, many companies choose to purchase workers’ compensation insurance. With this no-fault insurance, the provider will pay workers for missed workdays due to injuries. Alongside covering lost wages, workers’ compensation should cover at least some of the medical expenses related to a work-related injury or illness.

5. Professional Liability Insurance

Also called errors and omissions insurance, professional liability insurance protects businesses from claims of service-related mistakes. Some professionals who provide advisory services may need this insurance to meet state licensing requirements. Accountants, real estate agents, brokers, IT professionals, and other professionals who provide advisory services often benefit from having this insurance.

6. Commercial Auto Insurance

Due to North Carolina’s laws, any business that uses vehicles in their work must have commercial auto insurance. If you use a vehicle in the course of business, commercial auto insurance will protect your company from financial losses due to injuries, accidents, or property damage involving company-owned vehicles. These plans are usually very similar to personal auto plans but with more tailored coverage for business risks. North Carolina’s minimum liability limits for a company’s commercial auto insurance include:

• $30,000 per person for bodily injury
• $60,000 per accident for bodily injury
• $25,000 per accident for property damage

7. Business Interruption Insurance

Business interruption insurance protects companies from various events that could cause production to shut down. For example, supply chain problems and natural disasters could interrupt production, resulting in lost revenue. With business interruption insurance, you’ll insure your income and protect your company against financial loss.

8. Commercial Flood Insurance

Businesses located in parts of North Carolina that are at risk of flooding should seriously consider commercial flood insurance. This insurance plan protects your premises and physical assets from flood damage, which can save your business from having to pay for expensive repairs to your business, as well as any equipment and inventory you might have to replace.
Businesses that operate in parts of North Carolina that experience harsher winters with quick thawing in the spring are more prone to flooding and should usually purchase commercial flood insurance. Similarly, businesses in parts of North Carolina that deal with moderate to heavy rain often purchase it to protect themselves from flooding.

9. Insurance Plans for Employees

Alongside purchasing insurance for your business, you might want to extend insurance to your employees as part of a benefits package. Some common insurance plans offered by employers to their staff might include:

• Health Insurance
• Dental Insurance
• Vision Care Insurance
• Specific Disease Insurance
• Medicare Supplement Policies
• Hospital/Medical Expense Indemnity Insurance
• Nursing Home/Long Term Care Insurance
• Credit Insurance

Let the Greensboro Chamber of Commerce Help You Grow Your Business

Insurance is just one piece of the puzzle when you’re building a successful business. From startup guidance to networking with local experts, the Greensboro Chamber of Commerce is here to support your entrepreneurial journey every step of the way.

Learn more about how we can help your business today. If you have any questions about what we can assist your business with, please contact us.