Starting and running a business in the Land of 10,000 Lakes is an exciting endeavor! The business landscape in Minnesota is a competitive, growing market whether you’re a small, local startup or a growing corporation. One essential aspect of operating any business is securing the right insurance coverage. In this blog, we’ll explore the key types of commercial insurance your Minnesota business might require.
12 Common Commercial Insurance Types
General Liability Insurance
General liability insurance is a fundamental coverage that every business in Minnesota should consider. It helps protect your business from financial loss in the event you become liable for bodily injury, property damage, or personal injury resulting from your operations. This insurance type can cover legal expenses, medical bills, and settlements.
These insurance policies are commonly audited. For more information, see our December 2022 blog.
Commercial Property Insurance
Minnesota experiences a wide range of weather conditions, from snowstorms to hailstorms and flooding. Commercial property insurance helps protect your business property, including your building and its contents, in the event of damage or destruction caused by covered losses. It’s crucial for businesses with physical location
Workers’ Compensation Insurance
Minnesota law requires workers’ compensation insurance if you have any employees. This coverage provides financial support for employees who suffer work-related injuries or illnesses. It helps cover medical expenses and lost wages while protecting your business from potential lawsuits.
These insurance policies are commonly audited. For more information, see our December 2022 blog.
Commercial Auto Insurance
If your business uses vehicles for transportation, deliveries, or any other purpose, commercial auto insurance is a must. It covers accidents and damage to the vehicles, as well as liability for injuries or property damage that may occur in accidents.
Professional Liability Insurance
This type of insurance is crucial for businesses that provide professional services, such as doctors, lawyers, consultants, and architects. It protects against claims of professional negligence or errors and omissions in your work.
Cyber Liability Insurance
In today’s digital age, businesses in Minnesota, like anywhere else, are at risk of cyberattacks and data breaches. Cyber liability insurance can help cover the costs associated with data breaches, including legal fees, notification expenses, and potential financial losses.
Product Liability Insurance
If your business manufactures or sells products, product liability insurance can protect you from potential lawsuits arising from product defects or injuries caused by your products. This type of coverage is crucial to mitigate risks associated with product liability claims.
Business Interruption Insurance
This insurance can be particularly relevant in Minnesota, where severe weather events can disrupt business operations. It provides financial support when your business is unable to operate due to a covered peril, like a natural disaster.
Commercial Umbrella Insurance
An umbrella policy provides an extra layer of protection by extending the limits of your primary liability policies. This is especially useful for larger businesses that need additional coverage to safeguard their assets.
Employment Practices Liability (EPLI)
EPLI policies pay for damages and costs due to lawsuits brought against them by current or former employees. Typically, you must also have an active Business Owners, Commercial General Liability or Garage Liability policy before EPLI can be made available by endorsement. Most of the liability cases arise from workplace harassment, discrimination, or wrongful termination.
Employee Benefits Insurance
If your business offers employee benefits like health insurance, life insurance, or retirement plans, it’s important to protect these programs with appropriate insurance coverage. This ensures your employees receive the benefits they’ve been promised.
Directors & Officers (D&O)
This protects the individuals who serve as a Director, Officer, or Executive of a company. It also protect the company itself from personal financial losses if any legal claims or lawsuits are brought against them due to how their management decisions or actions. Common types of legal action this protects against include breach of fiduciary duty, negligence, and mismanagement of the company.
Find an Independent Agent You Can Trust
When selecting the right commercial insurance for your business in Minnesota, it’s essential to work with an experienced insurance agent who can assess your specific needs and help you tailor a policy to fit your unique requirements. Keep in mind that insurance requirements and regulations can vary depending on your business size and type. For this reason, it is wise to consult with a local insurance professional who understands both your industry and the local legal landscape.
We hope this Guide to Business Insurance in Minnesota helps answer some of your questions! Reliable Agency, Inc. has nearly 50 years of experience working with Northland businesses. Our commercial insurance agents make sure your business is protected from unexpected financial setbacks and legal challenges, allowing you to focus on what matters most. From builders and contractors, municipalities and schools, pavers and block-layers, manufacturers, retailers, and businesses of all types, we have the insurance tools you need!
