Missouri is home to 530,380 small businesses that employ almost 1.2 million Missouri residents. That sounds like a pretty great state for a small business owner to set up shop! But if you're a small business owner in the Show-Me State, you need to make sure you're protecting your business with the right coverage. So in this article, we'll share the type of insurance that's required in Missouri. We'll also cover the commercial liability coverage you should consider to add even more protection to your business.
What Insurance is Required in Missouri?
The Missouri Department of Insurance requires that all businesses with five or more employees carry workers' compensation insurance. General contractors who hire subcontractors may also be required to obtain workers' comp insurance.
Workers' Compensation Insurance
Missouri state law only requires that all businesses with five or more employees carry workers' compensation insurance. What is the purpose of workers' compensation? If an employee gets hurt on a job site or becomes ill due to exposure at work, workers' compensation will pay for their medical costs and cover some of their lost wages until they're able to return to work.
Types of MO Small Business Insurance
There are a few types of insurance that we recommend for Missouri businesses on top of what's required.
Missouri General Liability Insurance
General liability insurance (commonly referred to as business liability insurance, commercial liability insurance, or casualty insurance) isn't required but highly recommended for all business owners. Commercial general liability insurance is great for small business owners because of how comprehensive the coverage is compared to the cost. Commercial liability insurance usually covers:
- Third-party bodily injury: This covers medical care if someone is hurt on your property.
- Third-party property damage: If someone's property is damaged while visiting your business, your insurance company will pay to repair or replace the damaged item(s).
- Personal and advertising injury: This will protect your business if you're accused of "personal injury," which includes things like slander, copyright infringement, or libel.
Missouri Commercial Property Insurance
Commercial property insurance (or business property insurance) is recommended for any business that rents, leases, or owns a physical business location. Property insurance will cover physical damage to your building or office space caused by vandalism, theft, fire, and storms. It will cover the contents of your building, including furniture, inventory, equipment, as well as personal assets.
Live in a flood zone? You'll want to consider flood insurance since it's often excluded from property insurance.
Missouri Business Owners’ Policy
A business owners' policy (BOP) is a bundle of insurance coverages that insurance companies offer small businesses. A BOP is usually more affordable than purchasing each insurance option separately. A standard BOP will include commercial property insurance, general liability insurance, and business interruption insurance. However, insurance companies may include other options in a business owner's policy that covers specific risks unique to your industry. That's why it's best to work with an experienced insurance agent in your industry to get customized coverage for your small business.
Business Interruption Insurance
Business interruption insurance (also referred to as business income and extra expense) can help your business recoup costs if your building is damaged by recent storms or fire. If you can't operate, this policy helps you cover payroll, your lease, taxes, and sometimes a portion of lost profits. It's usually capped at a specific length of time—or until your business is up and running—whichever comes first.
Commercial Auto Insurance
We advise anyone who uses vehicles for their job (transporting patients, delivering goods, etc.) to have commercial auto insurance. Why? Personal auto policies often exclude coverage for accidents if they happened while conducting business. Commercial auto insurance coverage usually includes property liability coverage, bodily injury liability coverage, and covers general damages incurred during accidents.
Professional Liability Insurance
Professional liability insurance—i.e. errors and omissions insurance—will protect your business if you're accused of professional negligence, missed deadlines, professional errors, inaccurate advice, or incomplete work. Similar to a general liability policy, it can also cover legal costs if you're accused of libel or slander.
Professional liability insurance will pay your defense costs for legal claims and other legal expenses that may arise. This coverage is usually recommended for lawyers, architects, healthcare professionals, and anyone that offers professional services.
Cyber Liability Insurance
Cyber liability insurance protects your business if you're the subject of a cyberattack or data breach. If customer data is compromised, a cyber liability insurance policy will help notify impacted customers and cover the cost of credit monitoring for them.
Missouri Small Businesses Commonly Insured
Some professions that are commonly insured in the state of Missouri include:
- Lawn care businesses
- Accountants
- Real estate agents
- Contractors
- Consultants
- Food trucks
- Cleaning services
- Restaurants
- Dry cleaners
- Personal trainers
- Manufacturers
How Much Does Missouri Business Insurance Cost?
The cost of general liability insurance coverage for a small business in Missouri can start as low as $29 a month for between $500,000 and $1 million in coverage. However, there are some factors you should be aware of that might impact premium costs:
- The industry your business is in (Are you a retail business? A veterinarian?)
- Where your business is located
- How long you've been in business
- Whether or not you have a claims history
- The insurance company that you choose
- The deductibles and policy limits you choose
- The number of employees you hire
These are just a few of the factors an insurance agent will look at when assessing a small employers' needs for Missouri business insurance.
Get a Free Quote for Missouri Small Business Insurance
We understand that finding the best commercial insurance for your business can be difficult and time-consuming. Whether you are a plumber in St. Louis, a tree trimmer in Kansas City, or a remodeling contractor in Jefferson City. We can help you find the perfect coverage for your specific needs.
Our goal at Tivly is to help you get the right insurance coverage at an affordable price. The process is fast and easy! Complete the form at the top of the page and someone will reach out to you. Or, give us a call at 877-907-5267.
A small business in Missouri might also want to consider these additional insurance options.
- Commercial Umbrella Insurance
- Commercial Earthquake Insurance
- Home-Based Business Insurance
- Employment Practices Liability Insurance
To learn more about regulatory standards for insurance, check out the National Association of Insurance Commissioners.
Jennifer was extremly helpful, and was able to answer my questions in a timely manner and moved at my pace, which was extremly helpful, as a first time buisness owner.
They were spot on with their help to secure the insurance that was best for me. I was guided to the correct plan with the best price. I would certainly go back!
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