There are many things that distinguish corporations from startups and small LLCs or sole proprietorships. Corporations have tremendous revenues, employ many talents, and keep numerous resources-both financial and material. But there’s one thing that corporations and smaller businesses become similar - insurance.
Corporations still get insurance even if they have the money to cover eventualities. The tailored insurance policy most buy is called corporate insurance. This isn’t one insurance policy but is composed of different insurance products underwritten for businesses. Read this guide and dive deep into the particulars of corporation insurance.
Liability coverage is a common inclusion in corporation insurance. This cushions a corporation from legal fees and settlements. There are many types of liability insurance for corporations such as:
Your corporation can injure people or damage properties with its operations. General liability insurance takes care of this peril. Specifically, coverage extends to:
Third-party personal injuries - General liability insurance will cover the medical expenses of the person who got injured due to your corporation’s business operations
Third-party property damage - General liability insurance will reimburse the losses of the owners of the properties that got damaged due to your corporation’s business operations
Legal defense - If aggrieved third parties decide to take the matter in a court of law, general liability insurance will cover attorney fees, settlements, administrative costs, and other legal expenses on your corporation’s behalf
General liability insurance for corporations comes with add-ons. Such add-ons provide an improved protection. Namely, these are:
Advertising injury coverage - A third party will sue your corporation for copyright infringement, slander, libel, and other related offenses. In this situation, general liability insurance having advertising injury coverage will take care of administrative costs, attorney fees, compensatory payments, and other legal expenses
Rented premises liability coverage - Rented premises liability coverage will reimburse the property owner if the commercial space you’re corporation is renting or leasing becomes damaged due to a fire
Products and completed operations coverage - Products and completed operations coverage will cover attorney fees, administrative costs, compensatory payments, and other legal expenses if a completed/delivered product or service caused personal injuries or property damage and a past client decides to file a claim
General liability insurance for corporations doesn’t cover claims filed by employees or directors, partners, and other executives. Coverage only applies to customers, vendors, visitors, and other related third parties.
Your corporation’s employees can commit errors and omissions while providing a service. As a result, a client will sustain financial or economic losses. Expect a lawsuit to be filed. And for protection, there’s professional liability insurance. Professional liability insurance will cover attorney fees, compensatory payments, administrative costs, and other expenses when a client sues your corporation for:
Violation of good faith
Violation of fair dealing
Other acts considered errors and omissions
Your corporation can cause personal injuries or property damage due to a defective product or service. This is why insurance companies offer product liability insurance. Product liability insurance will cover attorney fees, compensatory payments, administrative costs, and other legal expenses if your corporation is sued for delivering a product having:
Errors in design
Errors in labeling
Commercial umbrella liability insurance supplements the limits of your corporation’s liability insurance policies. When your general liability, product liability, or professional liability insurance has all its funds completely used, commercial umbrella liability insurance will provide additional coverage for excess expenses.
Employees are one of the driving forces of your corporation. Such employees will experience a work-related injury or disease. This is why tailored coverage for corporations offers workers' compensation insurance. The function of workers’ compensation insurance is to cover the following:
Medical treatment/procedure - Workers' compensation insurance will cover the surgeries, medical therapies, and other treatment or procedures an employee needs to fully recuperate from a work-related injury or disease
Hospitalization - If your corporation’s employee needs to stay in the hospital after undergoing a medical treatment/procedure, workers' compensation insurance provides the money to be used for paying the bills
Medication - Your corporation’s employee will need medicines to fully recover from a work-related injury or disease. This is also covered by workers' compensation insurance. The policy will provide the money your corporation’s employee can use to buy needed meds
Rehabilitation - In case your corporation’s employee sustains impairment of bodily functions and needs rehab, workers compensation insurance will help cover therapist fees, rehabilitation equipment, and other related expenses
Lost income compensation - Workers' compensation insurance will help you cover lost wages if an employee requests a leave to fully recover from a work-related injury or disease. Compensation for lost income is a weekly allowance equal to two-thirds or 67% of the average weekly wage. For example, if your corporation’s employee receives $2,000 per week, lost income compensation will be $1,340
Death benefits - When your corporation’s employee dies from a work-related injury or disease, workers' compensation insurance will pay for funeral expenses and provide an allowance to dependents
Note that insurance companies include optional policies in workers' compensation insurance. These are:
Employer’s liability insurance - Employer’s liability insurance will cover attorney fees, administrative costs, and settlements if an employee sues your corporation for negligence after experiencing a work-related injury or disease
Employment practices liability insurance - Employment practices liability insurance will cover expenses if your corporation’s employee sues for wrongful termination, sexual harassment, workplace discrimination, and other offenses related with the violation of employee rights
Understand that workers' compensation insurance means a lot for your corporation. By having this coverage, employees will not be able to sue your business after experiencing a work-related injury or disease. But still, this depends on which state your corporation is located.
Not getting workers' compensation insurance is punishable by law. The punishment can be fines or imprisonment depending on which jurisdiction your corporation is conducting its operations.
Note that many states allow corporations to self-insure if commercial carriers don’t provide workers comp coverage. Nonetheless, there are requirements to be followed if you decide to go for self-insurance.
Your corporation has a building and other tangible assets. These are valuable. Tailored coverage for corporations has commercial property insurance. Its function is to cover:
Building damage - When your corporation’s building incurs damage by fire, theft, extreme weather, vandalism, and other covered perils, commercial property insurance will provide the money you need to fix affected structures
Building destruction - Fire and extreme weather will destroy your corporation’s building. In this scenario, commercial property insurance will provide the money you can use for reconstruction
Commercial property insurance has additional coverages. These are:
Stocks and contents coverage - When valuable items such as financial documents, furniture, office installments, etc. become damaged or lost due to fire, theft, vandalism, and other covered perils, stocks and contents coverage will recoup losses
Business equipment and tools coverage - This will recoup losses if business equipment and tools such as manufacturing machines, employee equipment, and other similar items become lost or damaged due to fire, theft, vandalism, extreme weather, and other covered perils
Understand that commercial property insurance doesn’t cover damage or destruction of business assets caused by earthquakes, floods, and mudslides. To get covered against this, get earthquake insurance, flood insurance, and mudslide insurance as endorsements or stand-alone policies.
Business interruption insurance is also included in tailored coverage for corporations. This provides protection against financial losses when business operations are at a halt to make way for relocation, renovation, or let an economic crisis pass by. In practice, while your corporation isn’t generating income, business interruption insurance will cover employee wages, mortgages, loans, and other operational costs.
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The average corporation insurance cost is $53 a month or $636 a year for a $1 million general liability insurance. Know that the individual pricing of all the policies included affects the cost of corporate insurance. Below is the individual cost of corporation policies for 2022 :
| ||Monthly Cost||Annual Cost|
|General liability insurance||$53||$636|
|Commercial auto insurance||$187||$2,244|
|Professional liability insurance||$46||$552|
|Business owner's policy||$84||$1,008|
|Commercial property insurance||$100||$1,200|
I t's important to note that several factors affect the price of various insurance premiums, and these are:
Costs of insurance vary based on the location of business operations. For instance, if one's business is located in an area that experiences natural calamities like flooding or storms regularly, they will pay more for coverage.
The size of your business workforce is synonymous with the amount of money you pay for insurance. More employees mean more chances of injury or accidents. Therefore, large businesses pay more for insurance than small ones.
Some occupations are riskier than others. This implies that the premiums for those occupations will be high. For instance, a manufacturing or construction company will pay more for insurance than an e-commerce business.
The overall cost of your business insurance is also affected by the amount your policy is likely to pay out under specified circumstances. For instance, commercial auto insurance with comprehensive coverage is costlier than one with minimum liability coverage. Additionally, the cost of business insurance will be increased when a business opts for a low deductible.
The worker's compensation insurance cost is directly related to the annual payroll. Also, insurers use a company's revenue to measure general liability insurance. Thus, the more customers a company has, the higher chances of injury or property damage claims.
As another point of reference, here’s a table showing the pricing of the most recommended insurance companies for corporation insurance:
| ||Monthly Rate||Annual Rate||Best for|
|CoverWallet||$48||$576||Corporation insurance quotes comparison online|
|Next||$51||$612||Instant coverage for corporations|
|Hiscox||$55||$660||Worldwide coverage for corporations|
|Nationwide Corporate Insurance||$60||$720||Experience in insuring corporations|
|Berkshire Hathaway Corporate Insurance||$62||$744||Insurance for corporations to be paid annually|
|The Hartford Corporate Insurance||$68||$816||Special coverages for corporations|
|Progressive Corporate Insurance||$72||$864||Corporation insurance with comprehensive commercial auto insurance|
|Chubb Corporate Insurance||$75||$900||General liability insurance for corporations|
The following are the best corporate insurance companies in the United States. Read to know their pros, cons, and monthly pricing for a $1 million general liability coverage.
Allows you to compare cheap corporate insurance quotes online for free
Easy policy management
Not an insurance company but an insurance broker
CoverWallet, with the help of its partners, provides you with customizable corporate insurance quotes. Available policies corporations can avail are EPLI, general liability, business owner’s policy, commercial property, commercial auto, and more. CoverWallet doesn’t simply sell insurance to customers. This company is dedicated to helping them make the right investment when it comes to insurance. And so, it made a smart and free tool that provides the quotes of insurance companies in the United States. So that you and other customers can compare the offers and pricing of carriers.
Best for: Corporation insurance quotes comparison online
Average cost: $48 per month
Our rating: 10/10
Offers numerous policy discount options
Covers you in an instant
Those used to traditional insurance processes might get taken aback by how Next do things
Next was established specifically for small businesses and sole proprietors. Hence, it provides policies essential to small businesses, like general liability and professional liability. It is unique among its competitors because it offers online quotes instantaneously, and one's coverage can begin on the same day. Its limitations are that it is not suitable for all types of business and it is still a young company established in 2016.
Best for:Instant coverage for corporations
Average cost: $51 per month
Our rating: 8/10
Transparent claims process
Can insure multi-national corporations
Hiscox has a lot of customer complaints
Hiscox is a multi-national insurance company offering property and casualty policies on its corporation insurance. Many like Hiscox because it offers very generous limits. Furthermore, the company boasts a very transparent claims process.
Best for:Worldwide coverage for corporations
Average cost: $55 per month
Our rating: 9/10
Has considerable experience in insuring corporations
Not available in Alaska and Hawaii
Some policies can’t be purchased online
Nationwide is the leading insurer in the United States with nearly 100 years in business. It offers traditional coverage options like general liability, professional liability, and commercial auto insurance and modern coverage options like cyber liability insurance for small and big businesses. Its online quotes are limited to only five types of coverage; it's unavailable in Alaska and Hawaii.
Best for: Experience in insuring corporations
Average cost: $60 per month
Our rating: 9/10
Available in 29 US states
Provides a discount if a customer decides to pay annually for their premiums
Has a low rating from industry watchdogs
It offers two traditional Business Owner's Policies (BOP) and one more comprehensive option, making it the best BOP provider in the US. One of the advantages of using Berkshire Hathaway is that one gets a discount when they pay for their coverage annually. Unfortunately, it is unavailable in some states (it operates in 29 states).
Best for:Insurance for corporations to be paid annually
Average cost: $62 per month
Our rating: 8/10
Offers specialized coverages for very large corporations
You can’t insure yourself with The Hartford
This insurer has the best policy plans for commercial property. It provides affordable and total coverage for every business, from sole proprietorship to multinational corporations. One of the advantages of contracting The Hartford is that its commercial property quotes are available online. Still, you need the help of an agent to complete the coverage application process. Its limitations are: if you have a large business, you will need extra specialized coverage. It is unavailable in the states (Hawaii, New Jersey, and Alaska) and lacks enough experience with big corporations. Another limitation is that some policies are unavailable online for customers' consideration.
Best for: Special coverages for corporations
Average cost: $68 per month
Our rating: 8/10
Offers comprehensive commercial auto insurance included in corporation insurance
24/7 customer service
Progressive custom policies are somehow lackluster
This is the United States' top commercial auto insurance provider, having written policies for over a million commercial vehicles as of 2019. One of the benefits of getting covered by Progressive is 24/7 customer care phone service and coverage in all the states of the US. It also provides direct commercial premiums to its customers. Its limitations are a few customization options for customers and limitations on the types of vehicles covered.
Best for: Corporation insurance with comprehensive commercial auto insurance
Average cost: $72 per month
Multinational insurance company
Offers comprehensive general liability insurance for corporations
There are reports saying that Chubb is too expensive for their liking
Chubb is a global corporate insurance company provider specializing in providing general liability policies to businesses of all types and sizes at a competitive price. Here are its benefits: it is suited for multinational corporations and small businesses. However, it does not provide online quotes for its commercial insurance policies and requires companies to purchase their coverage through an agent. Its global coverage also requires businesses to get an additional procedure which might hurt the pocket.
Best for: General liability insurance for corporations
Average cost: $75 per month
Our rating: 9/10
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Lonnie Bell Insuranker
Policy Type: Business Insurance
Company name: Employers Insurance
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!