Insurance for Small Business Owners in Rhode Island

Commercial Auto Insurance.

Rhode Island requires small businesses to obtain commercial auto insurance for business-owned vehicles. Rhode Island’s minimum liability requirements include $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $25,000 in property damage liability. The penalty for driving without auto insurance in Rhode Island is between $100 and $500 for the first instance.

Workers’ Compensation Insurance.

Small businesses in Rhode Island employing one or more people must obtain workers’ compensation coverage, regardless of whether they are full- or part-time. Some exemptions to the workers’ comp law include certain domestic and agriculture, real estate, sole proprietors, partners, and independent contractors. Penalties, including fines and imprisonment, may be imposed if you fail to obtain workers’ comp in Rhode Island.

Small Business Owner’s Insurance.

For convenience and savings, you can bundle property damage insurance and general liability into one comprehensive Business Owner’s Policy (BOP) for your Rhode Island small business. This policy typically covers losses and damages related to customers’ medical expenses for onsite third-party accidents like a slip and fall and business property and advertising damage claims.

General Liability Insurance.

If your Rhode Island small business does not need a BOP’s property coverage, a general liability insurance (GL) policy can be obtained as a separate policy. If your business leases a space, the property contract likely requires General Liability Insurance. GL helps ease the financial burden of customer injury and typically covers third-party property damage risks like fire, libel and slander lawsuits, and other risks. 

Professional Liability Insurance.

If your Rhode Island small business work includes providing expertise like financial advice, architecture, design, and technical services, then errors and omissions (E&O) Professional Liability insurance is recommended. E&O covers most work mistakes and errors, missed deadlines, incomplete work, and negligence lawsuits.

Cyber Liability Insurance.

Cybercrime is an ongoing threat to Rhode Island small businesses. Cyber Liability coverage is recommended for most small businesses in Rhode Island to help manage the fallout from a cyberattack like a data breach, including help paying for customer notification and fraud monitoring costs and associated legal fees. Cyber insurance helps businesses recover from ransomware and other common cyberattacks.