SMALL BUSINESS INSURANCE PENNSYLVANIA

General liability insurance, which insurance companies refer to as commercial liability or business liability insurance, is often the first type of coverage small businesses in Pennsylvania purchase. That’s because it can provide broad financial protection for some of the most common types of accidents.

Pennsylvania general liability coverage can help pay for damages, including lawsuit costs, if someone other than an employee accuses your business of causing physical injury or property damage.

For example, a construction company in Pittsburgh is working on a new building and hits a water main, causing the site to flood and delaying the project. If the building owner asks the excavation company to pay for the property damage, general liability insurance could help cover the expenses. It could also help pay for legal costs if the client sued.

Pennsylvania law requires most businesses with employees to carry workers’ comp insurance.

This kind of coverage is designed to provide a financial safety net when workers are hurt on the job. It can help pay for an injured employee’s medical expenses and lost wages while they recover and legal costs if the worker files a lawsuit.

For example, an employee of an Allentown-based auto repair shop drops a piece of heavy equipment, breaks a foot and needs six weeks to get better. Workers’ compensation insurance could help pay the worker’s medical bills and help provide lost wages during recovery.

If the injured employee files a negligence lawsuit against the auto repair company, Pennsylvania workers’ comp insurance could also help the business cover legal costs, such as attorney fees, court costs and settlements.

Businesses in Pennsylvania that own vehicles will need commercial auto coverage. That’s because personal auto insurance won’t cover damages for accidents that happen while driving for business.

For instance, a delivery worker employed by an Erie-based pizza restaurant has a serious collision on the way to a customer’s home. First responders order an ambulance to take the employee to the hospital for a checkup.

Commercial auto insurance could help the restaurant pay for the employee’s medical bills and lost wages. It could also help cover the costs to repair or replace damaged vehicles.

Hired and non-owned auto insurance is an optional add-on to commercial auto policies. It is designed to provide coverage for businesses that ask employees to drive personal vehicles for work or rent vehicles.

Pennsylvania commercial property coverage can help protect the essential things you need to run your business. It can help cover the cost to repair or replace your business property, equipment and physical premises after covered events like fire, water or wind damage.

Here’s an example of when commercial property coverage would come in handy:

A clothing store in Chadds Fort experiences an electrical fire that causes smoke and heat damage, ruining fixtures and its inventory. Commercial property insurance could help pay to clean up the damage and cover replacing damaged merchandise.

It’s important to read your policy documents carefully to make sure there aren’t exclusions for your business. Some locations might not cover flood or hurricane damage.

Professional liability coverage is also known as E&O or errors and omissions insurance. It can help protect small businesses that are accused of professional mistakes, missed deadlines or incomplete work.

For instance, a real estate agent in Philadelphia accidentally sends prospective buyers to the wrong address for an open house, and the seller later files a lawsuit for professional negligence. Professional liability insurance could help the agent’s company cover legal costs and pay for damages.