Best Small Business Insurance in Maryland 2023: Outstanding Picks

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Best Small Business Insurance in Maryland

Starting a small business in Maryland can be a rewarding and fulfilling experience, but it’s essential to protect your investment with the right insurance coverage. As you start an LLC in Maryland, it’s crucial to research and choose the best small business insurance that fits your needs. 

With many insurance providers offering a wide range of coverage options, selecting the best small business insurance can take time and effort. But fear not! LLCBase is here to help you navigate this critical aspect of running a successful business. In this guide, we’ll introduce you to the best small business insurance in Maryland for 2023, highlighting their unique offerings, eligibility criteria, financial strength, and customer satisfaction. 

Best Small Business Insurance

What is a Business Insurance

Business insurance refers to a set of insurance policies designed to protect a business and its owners from potential financial losses and liability risks associated with operating a business. These policies cover various aspects of the business, safeguarding it from unforeseen events such as property damage, lawsuits, employee injuries or illnesses, and interruptions in business operations.

The diverse range of business insurance policies in Maryland allows business owners to customize their coverage to suit their industry’s specific needs and potential risks. By investing in the appropriate business insurance policies, owners can focus on growing their business confidently, reassuring that they are protected against any unforeseen challenges that may arise during their entrepreneurial journey.

Small Business Insurance Coverage

If you want to start a business in Maryland and apply for business insurance, remember that it only covers the following:

  • Third-party bodily injury and property damage resulting from your business operations
  • Professional errors and omissions
  • Damage to your business property
  • Employee injuries and illnesses
  • Auto accidents involving your business vehicles
  • Cyberattacks and data breaches
  • Loss of income due to a covered event
  • Claims related to wrongful termination, discrimination, and harassment

On the other hand, small business insurance generally does not cover the following:

  • Intentional acts of damage or harm
  • Damage caused by normal wear and tear
  • Floods and earthquakes (unless specifically added to your policy)
  • Employee dishonesty or criminal activity
  • Losses resulting from business activities not disclosed to the insurance provider

10 Best Small Business Insurance Providers in Maryland

Choosing the right insurance provider is critical for any small business owner who wants to start a business; perhaps you want to start an insurance company in Maryland. Maryland is home to a thriving entrepreneurial environment, making it essential for businesses to have comprehensive insurance coverage. To help you make an informed decision, we have compiled a list of Maryland’s best small business insurance providers.

1. Allianz

Allianz is a global insurance and financial services provider with a strong presence in over 70 countries. They offer various insurance coverages, including general liability, professional liability, commercial property, and workers’ compensation insurance. Allianz is recognized for its extensive coverage options, global expertise, and strong financial rating, making it a reliable choice for small businesses seeking comprehensive insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A+ (Superior)

Pros
  • Wide range of coverage options
  • Strong financial rating
  • Global presence and expertise
Cons
  • Limited online resources for policy management
  • Not specialized in small businesses
Apply to Allianz

2. Allstate

Allstate is a well-known national insurance provider that offers a variety of customizable insurance policies for small businesses with up to 500 employees. Their coverage options include general liability, commercial property, and workers’ compensation insurance. Allstate is known for its personalized service through local agents and online policy management tools, making it a convenient choice for small business owners.

Eligibility Criteria: Must be a small business with up to 500 employees

Complaint Level: Average

A.M. Best Financial Strength Rating: A+ (Superior)

Pros
  • Customizable coverage options
  • Local agents for personalized service
  • Online policy management tools
Cons
  • Limited industry-specific coverages
  • Mixed customer service reviews
Apply to Allstate

3. Clear Blue Insurance

Clear Blue Insurance is a specialty provider focusing on niche and hard-to-place risks. They offer tailored coverage options for small businesses, including general liability, professional liability, and commercial property insurance. With a strong financial rating and a commitment to underwriting unique risks, Clear Blue Insurance is an ideal option for businesses looking for customized insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A- (Excellent)

Pros
  • Specializes in niche and hard-to-place risks
  • Tailored coverage options
  • Strong financial rating
Cons
  • Limited online resources for policy management
  • Not well-known in the market
Apply to Clear Blue Insurance

4. Farmers Insurance

Farmers Insurance is a national insurance provider offering a wide range of coverage options for small businesses with up to 500 employees. Their policies include general liability, commercial property, workers’ compensation insurance, and industry-specific coverages. Farmers Insurance is known for its local agents who provide personalized service and its commitment to meeting the needs of various industries.

Eligibility Criteria: Must be a small business with up to 500 employees

Complaint Level: Average

A.M. Best Financial Strength Rating: A (Excellent)

Pros
  • Wide range of coverage options
  • Local agents for personalized service
  • Industry-specific coverages available
Cons
  • Limited online policy management tools
  • Mixed customer service reviews
Apply to Farmers Insurance

5. Acuity

Acuity is a regional insurance provider offering comprehensive coverage options for small businesses. Their policy offerings include general liability, professional liability, commercial property, and workers’ compensation insurance. Acuity is recognized for its excellent customer service reputation, online policy management tools, and strong financial rating, making it a reliable choice for small business owners.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A+ (Superior)

Pros
  • Comprehensive coverage options
  • Excellent customer service reputation
  • Online policy management tools
Cons
  • Not available in all states
  • Limited industry-specific coverages
Apply to Acuity

6. CNA

CNA is a leading insurance provider offering various coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are known for their strong financial rating and industry-specific coverages, making them a solid choice for businesses seeking comprehensive insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A (Excellent)

Pros
  • Wide range of coverage options
  • Strong financial rating
  • Industry-specific coverages available
Cons
  • Limited online policy management tools
  • Mixed customer service reviews
Apply to CNA

7. Frankenmuth Insurance

Frankenmuth Insurance is a regional provider offering comprehensive coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are known for their excellent customer service reputation and personalized service through local agents, making them a reliable choice for small businesses in the Midwest.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A (Excellent)

Pros
  • Comprehensive coverage options
  • Excellent customer service reputation
  • Local agents for personalized service
Cons
  • Limited availability outside the Midwest
  • Limited online resources for policy management
Apply to Frankenmuth Insurance

8. Travelers

Travelers is a national insurance provider offering various coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are recognized for their strong financial rating and online policy management tools, making them a convenient choice for small business owners seeking comprehensive insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Average

A.M. Best Financial Strength Rating: A++ (Superior)

Pros
  • Wide range of coverage options
  • Strong financial rating
  • Online policy management tools
Cons
  • Mixed customer service reviews
  • Limited industry-specific coverages
Apply to Travelers

9. Chubb

Chubb is a global insurance provider offering comprehensive coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are known for their strong financial rating and global expertise, making them a reliable choice for businesses seeking extensive insurance solutions.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A++ (Superior)

Pros
  • Comprehensive coverage options
  • Strong financial rating
  • Global presence and expertise
Cons
  • Limited online resources for policy management
  • Not specialized in small businesses
Apply to Chubb

10. Westfield Insurance

Westfield Insurance is a regional provider offering comprehensive coverage options for small businesses, including general liability, professional liability, commercial property, and workers’ compensation insurance. They are known for their strong financial rating and personalized service through local agents, making them a reliable choice for small businesses in the Midwest and Northeast.

Eligibility Criteria: Varies by policy type and industry

Complaint Level: Low

A.M. Best Financial Strength Rating: A (Excellent)

Pros
  • Comprehensive coverage options
  • Strong financial rating
  • Local agents for personalized service
Cons
  • Limited availability outside of the Midwest and Northeast
  • Limited online resources for policy management
Apply to Westfield Insurance

How to Apply for Business Insurance in Maryland

Securing adequate insurance coverage is crucial to safeguarding your Maryland small business against potential risks and liabilities. Whether you’re just starting or growing your enterprise, follow this step-by-step guide to applying for small business insurance in Maryland confidently.

Step 1: Assess Your Insurance Needs

Analyze the specific risks your Maryland business may face, including potential lawsuits, property damage, worker injuries, or cyber threats. Consider the following types of insurance to help you determine which coverage suits your needs:

  • General Liability Insurance
  • Property Insurance
  • Workers’ Compensation Insurance
  • Professional Liability Insurance
  • Cyber Liability Insurance
  • Business Interruption Insurance
  • Commercial Auto Insurance

Step 2: Research Maryland Insurance Requirements

Each state has unique requirements for business insurance. Research Maryland insurance regulations and mandatory coverages, such as workers’ compensation or commercial auto insurance, if applicable.

Step 3: Compare Insurance Providers

Create a list of reputable insurance providers licensed to operate in Maryland. Compare their coverage options, limits, deductibles, and premiums to find the policy that best addresses your risks and fits your budget.

Step 4: Gather Necessary Documents

Before submitting your application, gather any necessary documents, including:

  • Business name and contact information
  • Federal Employer Identification Number (EIN)
  • Description of your business operations
  • Number of employees
  • Estimated annual revenue
  • Property details (if applicable)
  • Vehicle information (if applicable)

Step 5: Contact an Insurance Agent or Broker

Reach out to an insurance agent or broker to discuss your coverage needs and obtain insurance quotes. An agent can help you navigate the application process and provide guidance on obtaining the best protection for your Maryland small business.

Step 6: Submit Your Application

Fill out the application form provided by your chosen insurance provider. Carefully input the required information and attach any requested documentation. Be accurate and thorough in your responses to ensure you receive the appropriate coverage.

Step 7: Review and Sign the Policy

Once approved, thoroughly review your insurance policy to ensure it accurately reflects the coverage you discussed with your agent or broker. Pay attention to any clauses, exclusions, or limits. If satisfied, sign the policy and make the initial premium payment.

FAQs

What types of small business insurance are required in Maryland?
In Maryland, workers’ compensation insurance is required for most employers who have one or more employees.
Do small businesses need general liability insurance in Maryland?
Yes, general liability insurance is highly recommended for all small businesses in Maryland, as it can protect them if they are sued for bodily injury, property damage, or advertising injury.
What does business insurance cover in Maryland?
Business insurance in Maryland can cover various risks, such as property damage, liability claims from customers or employees, theft, cyber attacks, and business interruption.
What is cyber liability insurance and is it available in Maryland?
Cyber liability insurance is a type of coverage that protects your business from losses due to cyber attacks or data breaches. Yes, cyber liability insurance is available in Maryland and can be essential for businesses dealing with sensitive customer or client information.
Is professional liability insurance important for small businesses in Maryland?
Yes, professional liability insurance (also known as errors and omissions insurance) can be important for small businesses in Maryland that provide professional services or advice. It can protect against claims of negligence, errors, or omissions that lead to financial losses for clients.
Does Maryland require business owners to carry insurance for their vehicles?
Yes, If you or your employees use a vehicle for business purposes in Maryland, you’ll be required to carry commercial auto insurance.
Can sole proprietors get workers’ compensation insurance in Maryland?
Sole proprietors can choose to get workers’ compensation insurance in Maryland, but they are not required to have it unless they have employees.
Can an LLC owner be exempted from workers’ compensation coverage in Maryland?
An LLC owner in Maryland can elect to be exempted from workers’ compensation coverage, but only if they are the sole employee and the LLC has no other employees.
Does Maryland offer a state-sponsored program for workers’ comp insurance?
Yes, the Maryland Workers’ Compensation Commission offers a State Insurance Fund to provide workers’ compensation insurance to businesses that cannot obtain it through traditional insurance providers.
How much does workers’ compensation insurance cost in Maryland?
The cost of workers’ compensation insurance in Maryland varies depending on the type of work your business does, the number of employees you have, and other factors. You can get a quote from an insurance provider to find out how much workers’ compensation coverage will cost your business.
Are flood damages covered under business insurance in Maryland?
Flood damages are typically not covered under a standard business insurance policy in Maryland. Business owners may need to purchase separate commercial flood insurance to protect their properties.
Does business interruption insurance cover losses from the COVID-19 pandemic in Maryland?
It depends on the specific policy language, but many business interruption insurance policies do not cover losses due to pandemics like COVID-19.
Is business insurance tax-deductible in Maryland?
Yes, business insurance may be tax-deductible in Maryland as a business expense.
Can Maryland small businesses get insurance through the Affordable Care Act (ACA)?
Yes, Maryland small businesses can obtain group health insurance for their employees through the ACA’s Small Business Health Options Program (SHOP).
How can a small business owner in Maryland save on insurance premiums?
Small business owners in Maryland can save on insurance premiums by shopping around for different policies and performing a risk assessment to identify their most significant risks.
What’s the minimum amount of liability insurance required for small businesses in Maryland?
Small businesses in Maryland are not required to carry a specific minimum amount of liability insurance, but it’s highly recommended to have enough liability coverage to protect against potential lawsuits.
Can insurance be a requirement or contractually required in Maryland’s industry?
Yes, some industries may require businesses to carry specific types of insurance to obtain licenses or contracts in Maryland.
Do I need business insurance before starting a small business in Maryland?
It’s highly recommended to obtain business insurance before starting any small business in Maryland to protect your assets and reduce financial risk.
What’s the difference between business owner’s policy (BOP) and commercial package policy (CPP) in Maryland?
A business owner’s policy (BOP) is a packaged insurance policy that combines several types of coverage and is suitable for small businesses with low risk levels. A commercial package policy (CPP) is a customizable policy that allows more flexibility to add different types of insurance coverages as the business grows.
Are small businesses in Maryland required to have umbrella insurance?
No, small businesses in Maryland are not required to have umbrella insurance, but it can be essential in protecting against large liabilities that exceed the limits of primary policies.
Do LLC owners in Maryland need directors and officers insurance?
LLC owners in Maryland may need directors and officers insurance (D&O) if they serve on a board of directors or make decisions on behalf of the company that could result in legal action by employees, customers, or stakeholders.
Does Maryland require employers to cover employee health insurance?
No, Maryland does not require employers to cover employee health insurance, but offering health coverage can help attract and retain employees.
What is disability insurance for small businesses in Maryland?
Disability insurance can provide coverage to small business owners and employees who may become disabled and unable to work. It may cover a portion of the insured’s salary in the event of a disability.
Can a home-based small business get insurance in Maryland?
Yes, home-based small businesses in Maryland can get insurance coverage, but typical homeowner’s insurance may not cover all the liabilities associated with operating a business from home, and some would require to disclose that to their insurer.
What if my business isn’t legally required to have insurance in Maryland?
Even if your business is not legally required to have insurance in Maryland, getting coverage can still be important to protect your assets fully.
Can insurance agents be licensed to sell business insurance in Maryland?
Yes, insurance agents in Maryland can obtain a license to sell different types of business insurance.
Can I purchase insurance directly from an insurance company in Maryland?
Yes, small business owners in Maryland can purchase insurance from an insurance company directly, through insurance brokers or agents/officers.
Can startup businesses in Maryland get insurance coverage?
Yes, startup businesses in Maryland can typically get insurance coverage to protect against common business risks and liabilities.
Must non-profit organizations in Maryland get insurance coverage?
Yes, non-profit organizations in Maryland should obtain business insurance coverage to protect against different risks and damages at the same level as professional and for-profit organizations.
What types of small business insurance are required by law in Maryland?
Workers’ compensation insurance is required by law for businesses in Maryland with at least one employee.
Do small businesses need liability insurance in Maryland?
Yes, liability insurance can help protect small businesses in Maryland from lawsuits and claims that they’re legally responsible for.
What is Maryland’s minimum requirement for liability insurance?
Maryland doesn’t have a minimum requirement for liability insurance, but the state requires certain business types to carry specific minimum liability insurance levels.
What other types of insurance should small business owners consider in Maryland?
Small business owners in Maryland may also want to consider property insurance, business interruption insurance, cyber liability insurance, and professional liability insurance.
What factors should small business owners in Maryland consider when shopping for insurance?
Small business owners in Maryland should consider factors such as cost, coverage limits, deductibles, and the insurer’s financial strength when shopping for insurance.
Can my small business be fined for not having workers’ compensation insurance in Maryland?
In Maryland, businesses that fail to carry workers’ compensation insurance as required by law may face penalties and fines from the state.
What should I do if an employee is injured on the job in Maryland?
If an employee is injured on the job in Maryland, you should file a workers’ compensation claim with your insurer as soon as possible.
What does Maryland’s Workers’ Compensation Commission do?
The Maryland Workers’ Compensation Commission resolves disputes between injured employees and their employers’ insurance companies regarding workers’ compensation benefits.
Are health insurance plans required for small businesses in Maryland?
Small businesses in Maryland aren’t required to provide health insurance for employees, but they may face penalties under the Affordable Care Act if they choose not to.
Can small businesses get group health insurance in Maryland?
Yes, small businesses in Maryland can get access to group health insurance plans through the state’s small business health options program (SHOP).
What are the advantages of a group health insurance plan for small businesses in Maryland?
Group health insurance plans can help small businesses in Maryland save money on healthcare costs and improve employee retention by offering benefits.
How do I qualify for discounts on workers’ compensation insurance premiums in Maryland?
In Maryland, small businesses that establish safety programs and take other steps to prevent workplace injuries can qualify for discounts on workers’ compensation insurance premiums.
What types of events does business interruption insurance in Maryland typically cover?
Business interruption insurance in Maryland typically covers disruption caused by events such as fire, theft, and natural disasters.
What’s the difference between general liability and professional liability insurance?
General liability insurance typically covers bodily injury, property damage, and other third-party claims, while professional liability insurance is designed to cover claims related to professional errors or negligence.
Do I need business auto insurance in Maryland if I use my personal vehicle for business purposes?
Yes, if you use your personal vehicle for business purposes in Maryland, you’ll need business auto insurance to be adequately covered.
What is Maryland’s minimum auto insurance requirement for businesses?
Maryland requires businesses to carry at least $30,000 in bodily injury liability coverage per person and $60,000 in bodily injury liability coverage per accident for their business vehicles.
Can I get insurance coverage for intentional acts of employees in my small business in Maryland?
In general, intentional acts of employees aren’t covered by small business insurance policies in Maryland or elsewhere.
What is the statute of limitations for workers’ compensation claims in Maryland?
In Maryland, employees must report work-related injuries to their employer within 10 days of the injury and workers’ compensation claims must be filed within two years of the injury.
What type of business insurance can protect my Maryland-based small business from theft and fraud?
Crime insurance can protect Maryland-based small businesses from losses related to employee dishonesty, forgery, theft, and fraud.
Can I bundle different types of insurance policies for my Maryland-based small business to save money?
Yes, bundling different types of insurance policies for your Maryland-based small business can often result in cost savings and streamlined coverage.
What services can forensic accountants provide to small businesses in Maryland?
Forensic accountants can provide Maryland-based small businesses with services like fraud investigations, internal control assessments, and litigation support.
Can I get business insurance coverage for online transactions in Maryland?
Yes, cyber liability insurance can protect Maryland-based small businesses from losses related online data breaches, hacks, and cyber attacks.
Are there any tax benefits for small businesses that offer employee health insurance plans in Maryland?
Small businesses in Maryland may be eligible for state tax credits for offering health insurance coverage to their employees.
Can I get insurance coverage for natural disasters that are common in Maryland, like hurricanes and flooding?
Yes, property insurance and business interruption insurance in Maryland can provide coverage for damage and losses resulting from natural disasters.
How do I know if my Maryland-based small business is required to carry professional liability insurance?
Certain professions in Maryland are required by law to carry professional liability insurance, but even if it’s not required, it’s still a good idea to consider the coverage.
Are there any programs or resources available for Maryland-based small businesses in the insurance industry?
Yes, the Maryland Insurance Administration provides various resources and licenses insurance producers in Maryland.
Can I get liability insurance to cover employee discrimination and harassment claims in my Maryland small business?
Yes, employment practices liability insurance (EPLI) can help protect Maryland-based small businesses against claims of discrimination and harassment by employees.
What actions should I take if an employee files a workers’ compensation claim against my Maryland-based small business?
If an employee files a workers’ compensation claim against your Maryland-based small business, you should report the claim to your insurer as soon as possible and cooperate with their investigation.
Is it better to get insurance policies directly from an insurer or through a broker in Maryland?
Both options have their pros and cons, but working with an insurance broker can help you get a better sense of the insurance options available to you and potentially save you time and money.

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Conclusion

Selecting the best small business insurance for your Maryland LLC is a crucial step in protecting your investment and ensuring the long-term success of your business. Take the time to research each provider, evaluate their eligibility criteria, complaint level, and financial strength rating, and consider the pros and cons of each option. By doing so, you can make an informed decision and choose the insurance coverage that best meets your needs and protects your business in The Old Line State. Visit LLCBase for more information about starting an LLC in Maryland.

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