If you’re looking to start up a business in Pennsylvania, you’re in good company. The Keystone State is home to over 1 million small businesses, making up 99.6% of all businesses in the state.1 The entrepreneurial spirit still lives on in the state that brought us Benjamin Franklin, Andrew Carnegie and Charles Schwab.

As a small business owner, there are certain bases you need to have covered before you can safely (or legally) operate. One of those bases is small business insurance. In this guide, you’ll learn about the types of insurance you’re required to have, and some other coverage options to help you protect your business from the financial consequences of potentially expensive claims.

What business insurance am I required to get in Pennsylvania?

Pennsylvania workers’ compensation insurance

All employers in Pennsylvania with three or more employees are legally required to have workers’ compensation insurance. Workers’ compensation insurance exists to safeguard employees from financial impact related to injuries or illnesses sustained on the job. As a business owner, it also protects you from liability related to employee injuries. Workers’ compensation covers expenses and lost wages caused by the following:

  • Work-related accidents and injuries, such as repetitive stress injury, and resulting disability
  • Illnesses caused by or related to employment

Pennsylvania auto liability insurance

If you drive a car, truck or van as part of your business operation, you’re required to have auto liability insurance or qualify as a self-insurer. Auto liability insurance can protect you and your business from the financial consequences of the following types of third-party claims resulting from auto accidents involving your vehicle:

Bodily injury liability– If you get into an accident and the driver or a passenger of the other vehicle is injured, your auto bodily injury liability insurance covers the costs arising out of bodily injury, including medical expenses and death benefits.

Property damage liability – In the above scenario, it’s extremely likely the other car sustained some damage as well. Your auto property damage liability insurance coverage insures the cost to repair or replace the other party’s vehicle.

In Pennsylvania, your auto liability insurance also provides coverage for:

Medical benefits – While most states simply require liability coverage for auto insurance, Pennsylvania requires an additional $3,000 in medical benefits coverage for the driver and passengers of the insured vehicle on top of that. This covers medical bills for you or anyone else covered by your policy, regardless of who is at fault in an accident.

Also, depending on the use of your vehicle, the kind of vehicle or if your vehicle is registered or titled under your business name, you may need a commercial auto insurance policy to secure the appropriate coverage and vehicle registration, and avoid penalties.

What other types of business insurance are recommended for Pennsylvania?

Pennsylvania general liability insurance

General liability insurance (also known as CGL—for commercial general liability) is one of the most essential and effective ways to safeguard your business. It protects your business from the financial consequences resulting from liability related to third-party non-employee bodily injury or third party property damage that arises from your business operations. It also provides coverage for personal and advertising injury. Without general liability insurance coverage, you could be in financial trouble in the event of an unfortunate accident involving a customer or other third party.

Pennsylvania professional liability insurance

If you provide professional services and your advice is alleged to have led to one of your clients suffering a financial loss, professional liability insurance can help. When a former customer or client claims—rightly or wrongly—that a mistake in your work led them to suffer a financial loss, professional liability insurance provides you with investigation and defense of the claim as well as making payments of any settlements or judgments.

Inland marine insurance

Inland marine insurance is designed to protect that vital equipment you use to make your business run smoothly. It protects your business by covering costs associated with accidentally damaged, lost or stolen equipment that is on the go with you. Whether you have an expensive tool collection, pricey construction materials, or other equipment you transport to a job site, having inland marine insurance is a no-brainer. At Thimble, we offer inland marine insurance, or Business Equipment Protection as we call it, with coverage for up to $5,000 worth of business property and equipment.

Commercial property insurance

Commercial property insurance protects your company’s building and the contents inside it from all kinds of risks of physical loss or damage, including theft, vandalism, fires and natural disasters such as floods, storms or earthquakes. Commercial property insurance is often included as part of a Business Owners’ Insurance Policy, or BOP.

Professions covered in Pennsylvania

No matter what your business is, if you’re in Pennsylvania, you’ll benefit from being insured. If a non-employee slips and falls due to a workplace hazard or you accidentally damage a client’s property while working in their home, the last thing you need is to pay out-of-pocket for damages. In Pennsylvania, Thimble’s business insurance covers:

Professions covered in Pennsylvania

Cost of business insurance in Pennsylvania

At Thimble, the cost of your small business insurance depends on a variety of factors. The amount of risk involved in your business, the industry you’re in, and the amount of business you do all play a part in determining your policy premium.

Another important factor is your location. A large city like Philadelphia or Pittsburgh might have higher premiums on average than a smaller town like Altoona.

Finally, Thimble will look at factors such as your crew size, coverage amount and the number of years you’ve been in business before determining how much your premium will be.

Median Pennsylvania insurance costs

Coverage Period

By the hour

By the day

By the Week

By the month

Median Cost

$10.62

$18.21

$90.57

$92.38

Top cities for businesses in Pennsylvania

  • Allentown
  • Harrisburg
  • Lancaster
  • Philadelphia
  • Pittsburgh
  • Reading
  • Scranton
  • State College
  • Wilkes-Barre
  • Youngstown

Bottom line: Pennsylvania business insurance

From Philadelphia to Wilkes-Barre and everywhere in between, over a million small businesses call the Keystone State home. Pennsylvania’s long history of pioneering entrepreneurs can still be felt today in the attitude and work ethic of small business owners all across the state. But to successfully run a business, you need to make you’re covered by the right kinds of insurance.

Even if you’re just starting up, you can find Pennsylvania business insurance coverage that’s right for you. Through Thimble, you can get a quote for your general liability insurance, professional liability insurance or Business Equipment Protection in less than a minute and if you decide to buy, you’ll be able to access your policy and Certificates of Insurance (COIs) in your inbox instantly.

Source:

  1. U.S. Small Business Administration Office of Advocacy. Pennsylvania Small Business Economic Profile