Insurance for Small Business Owners in Minnesota

Commercial Auto Insurance.
The State of Minnesota has made adequate automobile insurance coverage mandatory for both commercial and individual travel. This means carrying minimum benefit amounts for bodily injury liability ($30,000 per person/$60,000 per accident) and for property damage liability ($10,000 per accident).

Workers’ Compensation Insurance.
Small businesses in Minnesota are required to carry active Workers’ Compensation coverage regardless of size. This typically covers the medical and legal costs for employees who are injured or become ill on the job. Without this coverage, your small business may incur state fines in addition to associated legal fees and medical costs required to treat the employee.

Small Business Owner’s Insurance.
A Business Owner’s Policy (or BOP) is a cost-effective way for small business owners in Minnesota to bundle both property insurance and general liability into one comprehensive policy. Typically BOP covers losses and damages related to buildings used for business purposes, as well as machinery, equipment, and business personal property. It also covers customer medical expenses for onsite accidents and advertising damage claims.

General Liability Insurance.

Although included in a BOP policy, some small business owners may seek out General Liability coverage as a separate minimum coverage as it may be required to lease commercial office space. Typically it covers customer medical expenses for onsite accidents and other damage claims, like false advertising.

Professional Liability Insurance.
If your services business specializes in providing expertise and advice, Professional Liability coverage is recommended. It typically covers work mistakes and errors, missed deadlines, incomplete work and professional negligence lawsuits. Also, referred to as “errors and omissions” insurance.

Cyber Liability Insurance.

Misplaced flash drives with customer data and phishing scams can cost your small business upwards of $200,000 or more to resolve. Cyber Liability coverage makes financial sense: It typically covers system damage, customer notification and fraud monitoring costs, as well as legal fees, associated with breaches, malicious hacking, and cyberattacks.