Table of contents
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:
Negligence
Misrepresentation
Violation of good faith
Violation of fair dealing
Other acts considered errors and omissions
Inaccurate advice
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
Manufacturing defects
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 |
| Worker’s compensation | $86 | $1,032 |
| 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
Our rating: 9/10
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
Get all the best quotes from leading providers in a click of a button!
Find the best coverage for your company by comparing quotes online! To start, click the “Get Quotes” button and complete the form. Receive the corporation insurance quotes from the best carriers in the US and get your business protected from risks.
2 / 10
I purchased a year long policy for my small business I paid for the year up front. First they sent me the incorrect paperwork and acted as if I had something to do with the mistake. About three weeks later I received a bill for the policy. I then sent countless email as the payment did clear my account. About a week later I'm told they have no record of my payment. Now I have to send any documents proving I said then. It went on for weeks. More requests of proof from this person then another.... Read More
10 / 10
Simple online quoting and purchase. excellent mobile app. claims filing via phone, website or app. Combines competitive rates with excellent customer experience. Progressive provides all of the coverage a small business needs. not to mention its financial strength
10 / 10
Excellent business insurance coverage tailored to your business needs in good rates, professional customer service, pays claims fast and fairly. Recommended!
10 / 10
For me this company has proven to be the best to do business with and worth my hard earned money. Contractors this is your company look no further.
7.7 / 10
Decent experience with Hiscox business insurance
10 / 10
Good company. Good and knowledgable customer service. If they don't know something they will pass you on to a more experienced rep that is more knowledgable. So far so good.
10 / 10
Best insurance ever
10 / 10
Coolest concept, I wish this was applied to other insurance products too.
9.4 / 10
Fastest ever online insurance quote and purchase! Also, great rates and professional customer reps that helps with whatever you need, if you need. Nice company!
2.8 / 10
Embroker sells a product that it doesn't honor. We purchased a combination D&O and EPLI policy. However, when it came to renewal, it told us that we only had D&O coverage even through our ACCORD certificate clearly mentions we have both. Basically they refused to honor the EPLI coverage and will leave you hanging with the bag. At time of renewal, they more than doubled our quote to get similar coverage. Basically BAIT & SWITCH. Unacceptable tactics. Easy to buy and pay but you may not be... Read More
2.8 / 10
Great platform. Terrible policy. There is no teeth behind it. No coverage. It's a fake policy that they sell. Sold us an EPLI policy that later we came to find out had no EPLI coverage. Amazing that they can get away with outright fraud. Check the positive reviews. They are all 'Anonymous' posted by Emroker staff. Stay away and find a real policy that will actually provide you coverage. We've been bitten by them and hope to find restitution via a lawsuit.
Paul Burns Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
It has been 70 days since I made a claim on the roof of my building. No one from the company will return calls. We are in hurricane season and located in Louisiana. My building is tarped to secure it.
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
They are the worst, my truck was hit in January 23 and the claim adjuster has not been out to this very day! They have every excuse in the book as to why. They have not been to the collision shop. PLEASE AVOID THESE SCAM ARTIST!
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Avoid these SCAM ARTISTS! They don’t pay claims!!! Save yourself the trouble and money!
Kasey Arey Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
This company gives you a price that was in place for a year and when you have to use it there is fine print were they can go back and charge you more. Would not recommend them to any one. Crooks
John Murphy Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Worst insurance comapny I have ever dealt with. A commercial vehicle represented by GUARD t boned my wife and daughters family vehicle in the middle of the day. Driver was cited and insurance claim insued. Fast forward 4 months and refusal of full amount of claim is still happening. Driver was found guilty, repairs started on my vehicle and when it comes to the final bill and diminished value we cannot get any help. I am out a family car, have an injured and traumatized wife and children,... Read More
Harshadray Patel Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Extremely bad service, when you call , will make you wait on the phone for ever (over an Hour) and still no one to answer , so you end up hanging up. To cancel the policy, bounce you from one department to the other. They are supposed to refund from the date other insurance started and after sending the proof of other insurance policy, still they did not refund based on that actual date instead they use the date i managed to get hold of them. They charged me $7000.00 for a year's insurance on... Read More
Aaron Wensel Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Guard Insurance is terrible. They were so bad I cancelled them because them couldn't figure out why I would never get a paper copy of the bill . Verified my address with them and still intermittent billing. I cancelled them in March through my local broker. Today 6/27 I get a letter in the mail from a collections company saying I owe 87.97. This was the first myself or my broker heard of owing this money. Here is some advice for this failure of a company send me a god damn bill and I will pay.... Read More
Michael Swink Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
My employer had to have workers compensation by law. He obtained a policy through this Berkshire Hathaway GUARD and they failed me. I fell from a ladder and fractured my spine in 7 different places, my clavicle in 4 places, and the base of my skull. Going to my Dr visits I was prescribed medication for pain and the insurance company placed a pre-authorization hold on me picking up the medication from Walgreens. The hold lasted 5 days! My weekly benefits have never been on time, right now... Read More
2 / 10
I never purchased the policy. The person I spoke with "Bruce" was condescending and argumentative. He kept repeating himself and talking in circles telling me what I HAVE TO DO, basically trying to bully me into purchasing commercial insurance. I wouldn't use this company if they were paying me!
9.8 / 10
Chubb provides business insurance coverage for all size of businesses, from small local ones to huge multinational corporates, they are very fast to respond to your claims, their business insurance coverage is very advanced while being tailored to your needs, aka covering you from all sides without over-covering you to make you pay more like some companies do. I'm a very satisfied customer.
9.7 / 10
Very annoyed in 2020 they do not offer online quotes, however they are great at everything else. The coverage is amazing, customer service is world class, value of money is great (even when their rates are not the cheapest), fast and excellent handling of claims, very dedicated and business focused. The only other issue is since they cover all types and sizes of businesses, they do not seem to specialize in any of them specifically.
2 / 10
I purchased a year long policy for my small business I paid for the year up front. First they sent me the incorrect paperwork and acted as if I had something to do with the mistake. About three weeks later I received a bill for the policy. I then sent countless email as the payment did clear my account. About a week later I'm told they have no record of my payment. Now I have to send any documents proving I said then. It went on for weeks. More requests of proof from this person then another.... Read More
10 / 10
Liberty Mutual is one of the more simple companies to deal with. I had to file a claim for my business owner policy after I caught one of my employees stealing a large amount of products from my business. Liberty mutual paid the claim fast and with no efforts. I wish the legal process was as easy…
10 / 10
Simple online quoting and purchase. excellent mobile app. claims filing via phone, website or app. Combines competitive rates with excellent customer experience. Progressive provides all of the coverage a small business needs. not to mention its financial strength
0 / 10
State Farm's business insurance was such a bad choice for us. Worst communication, very unprofessional. Been insured for over 12 years through a local statefarm agent who we were having insurance for our own home, our personal cars, our own health insurance, workers compensation, all of our commercial autos that serve our business - our agent didn't inform us of raising our premium rates, of certain inspections, and send us very rude emails upon our policy cancellations that were caused by his... Read More
10 / 10
Extremely helpful, kind and knowledgable customer service team! I received a business insurance package that was tailored and personalized to my exact business needs! Excellent liability insurance. Their pricing for business insurance is not the most affordable you'll find, however it's better to pay more and know that you are covered well. We got coverage for $1M. In regards to claims, I haven't had any experience so cannot attest, but the rest was excellent so I'm sure claims will be great as... Read More
10 / 10
Customer service is fast and efficient. They were very caring about issues that we faced, checked them all and resolved our claims fast. State Farm is an excellent company. They gave us excellent business insurance coverage that was customized to our precise needs. We worked together to build the most suitable coverage to our needs, nothing more or less, while making sure the rate is good enough. State Farm's business insurance cost was very good compared to other companies, while maintaining a... Read More
10 / 10
Excellent business insurance coverage tailored to your business needs in good rates, professional customer service, pays claims fast and fairly. Recommended!
10 / 10
highly recommended!
10 / 10
Their business insurance products are by far the best business decision I've made financially. Got us covered when we needed it and for such a bargain cost. Couldn't recommend more!
10 / 10
Excellent business insurance policies at cheap rates. Claim process was easy and helped us cover financial loss.
10 / 10
Great rates and excellent service. Our business feels safe.
10 / 10
For me this company has proven to be the best to do business with and worth my hard earned money. Contractors this is your company look no further.
7.7 / 10
Decent experience with Hiscox business insurance
9.4 / 10
Very pleased with Hiscox - their small business insurance rates are very good and they specialize in small business which gives me a peace of mind as a small business owner. So far so good!
10 / 10
Their customer service is absolutely fantastic. Very patient, knowledgable and provided excellent explanation of the purchased policy. I would highly recommend this insurance company to anyone that's looking to protect their business from unexpected expense. Thank you Hiscox for doing a great job for my business!
0.6 / 10
STAY AWAY! I wouldn't recommend hiscox small business liability insurance to anyone. Better not waste both your money and your time. Hiscox customer service is extremely unpleasant, not organized and not professional. It is the worst company we have dealt with in almost 25 years in business!
10 / 10
Good company. Good and knowledgable customer service. If they don't know something they will pass you on to a more experienced rep that is more knowledgable. So far so good.
10 / 10
Extremely fast and simple. Wasted a lot of time and money until I found these guys! I feel like my business is in good hands now.
Not all those who wander are lost.
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