Business Insurance Virginia: Our Top Picks 2021

Last modified: December 11, 2020

We answer the most common questions and tell you about the best business insurance in Virginia with a detailed review of each company.

Business Insurance in Virginia protects your business from losses due to events that may happen during business operations. You can get a wide range of coverage options, such as employee-related risks, legal liability, and property damage. 

Business insurance covers property damage and protects you from contract disputes or lawsuits. Without business insurance, you’ll find yourself paying out of your own bank account for costly disputes and damages. 

Business owners searching for business insurance in VA have come to the right place. In our guide, we evaluate the average cost of business insurance in the state, informing you about the state’s laws and business insurance requirements. We answer the most commonly asked questions and tell you about the best business insurance companies in the state with a detailed review of each.

Business Insurance in Virginia Stats and Facts

What Does Virginia Small Business Insurance Typically Cover?

The most commonly offered business insurance policies in Virginia include:

  • Workers Compensation Insurance is mandatory for all small business owners in Virginia. It covers medical expenses for work-related injuries such as a slip & fall and illnesses.
  • Commercial Auto Insurance is another mandatory coverage all small business owners in Virginia need to obtain. It covers bodily liability and property damage liability
  • Property Insurance covers inventory, equipment, signs, and furniture due to wind damage, water damage, fire, storm, or theft. You’ll need to take out a separate policy if you are located in an area prone to earthquakes and floods.

You’ll also need to take out a rider, which is an addition to your current coverage, to protect expensive and high-value items. 

  • Business Owners Policy (BOP) combines business liability insurance and business property insurance into one and protects the business from claims due to theft or vandalism, fire, or other covered events. 
  • Business Interruption Insurance protects small business owners operating from a physical location such as a retail store. It covers lost income due to certain events responsible for disrupting normal business operations. 

Who Needs Virginia General Liability Insurance?

General business liability insurance in Virginia is a requirement by the state for most small businesses in the state. General liability insurance protects business owners in Virginia from both direct and indirect damages to other people. 

The insurance coverage reimburses you for damage caused to another person either by the actions of your employees or your business. You should obtain general liability business insurance if you operate your business from a physical location or deal with customers, employees, visitors, and/or third-party sub-contractors. 

Most VA business insurance companies provide business owners the option to choose from various insurance deductibles and policy limits within your insurance coverage.

If you operate from home and your clients visit you, you still need to obtain general liability insurance. Ask your insurance company if you work from home, as they might have dedicated insurance coverage for home-based business owners.

What Could Cause a Virginia Business General Liability Insurance Claim?

Following is a list of claims statistics nationwide:

  • 40% of small businesses owners file a claim against their insurance coverage across a 10-year duration 
  • 20% of small business owners file a claim due to theft and burglary 
  • The most common claims filed by business owners in the past include: 
    • Professional Liability Insurance (22.2%) for contract dispute or client complaints 
    • Workers Compensation Insurance (10.6%)for employees injured on business property 
    • Commercial Property Insurance (8.8%) for theft or burglary
    • Property Insurance  (6.6%) for fire, cracked pipes, or damage
    • General Liability Insurance (2.4%) for customers injured on business property 
  • The most costly claims include:
    • Reputational Harm ($50,000)
    • Vehicular Accident ($45,000)
    • Fire and Product Liability (35,000)
    • Customer Injury ($30,000)
    • Wind and Hail Damage ($26,000)

How Much Does Business Insurance Cost in Virginia?

The cost of business insurance in Virginia varies greatly from one business to another. The average business insurance cost in the state that a small business owner can expect to pay is between $300 and $5,000 each year. 

The SIC code or the insurance provider’s classification system for the General Liability rating also affects the cost. To put it simply, the risker your business, the higher your business insurance premium will be.

What Impacts the Cost of Business Insurance?

The following factors affect the cost of business insurance in Virginia:

  • Your industry (service, retail, professional, contractor, or hospitality) 
  • Number of customers 
  • Number of employees 
  • Property and location
  • Business claims history
  • Payroll size
  • Yearly revenue
  • Insurance claims history

 

What is the Average Cost of Business Insurance in Virginia?

Although the average cost of business insurance in Virginia is between $300 and $5,000 per year, the type of business you operate along with other factors stated above can affect the business insurance rates in Virginia Beach, Norfolk, Chesapeake, Richmond, and Arlington.

Laws and Insurance Requirements for Businesses in Virginia

What does the law require for small business insurance in Virginia

The business insurance requirements in Virginia that small business owners need to follow are:

Small Business Workers Compensation Insurance

According to Virginia state law, small businesses employing two or more people, either full-time or part-time, need to obtain workers compensation insurance. In the construction industry, the state requires businesses employing even one worker to obtain this policy. 

This policy pays for the worker’s medical expenses for work-related illnesses and injuries.

Commercial Auto Insurance

Every driver in Virginia needs to have the means to pay for property damage or injuries due to an auto accident. Although they don’t need to take out commercial auto insurance, they still need to have the minimum auto insurance to meet this requirement. 

The minimum in the state is $25,000 bodily injury for each person, $20,000 property damage for each auto accident, and $50,000 bodily liability for each person. Any business that has a company-owned vehicle needs to have commercial auto insurance. 

Virginia Age Discrimination Act

In all U.S. states, every business with at least 15 workers needs to abide by the age discrimination act. Employers need to assure freedom from employment discrimination based on color, race, sex, national origin, disability, and religion. Businesses with at least 20 workers need to assure freedom from age discrimination, whereas businesses with at least 4 workers need to assure freedom from discrimination based on their citizenship status.

General Business Liability Insurance 

Even though the law doesn’t require businesses in Virginia to take out general business liability insurance, most business owners choose to buy it. The minimum liability insurance a Virginia business should take out is $500,000 minimum and $1 million maximum. The general liability insurance a new business in Virginia should buy is based on the type of business. 

Best Business Insurance Companies in Virginia

Company Ratings Best For Key Features
The Hartford
  • AM Best:  A+
  • JD Power:4.1/5
  • Standard & Poor’s:  A+
  • Moody’s:  A1 
  • Fitch:  AA-
Workers compensation insurer for small businesses
  • Fast and convenient online quote generator 
  • Excellent customer service representatives
  • The website has over 50,000 customer reviews 
USA Business Insurance
  • AM Best:  N/A
  • JD Power:  N/A
  • Standard & Poor’s:  N/A
  • Moody’s:  N/A
  • Fitch:  N/A
Customized business insurance 
  • Online quote system generates quotes from industry and insurance type and insurance limit
  • Provides business insurance coverage for several different industries
  • Highly customizable business insurance coverage options
State Farm
  • AM Best: A++
  • JD Power: 5/5
  • Standard & Poor’s:  AA
  • Moody’s: Aa1
  • Fitch: A+
Customer service
  • Have a nationwide network of insurance agents
  • Standard general liability business insurance available in $1 million increments
  • Offers several different types of business coverage options, including add-ons 
AIG
  • AM Best:  A
  • JD Power:  N/A
  • Standard & Poor’s:  A+
  • Moody’s:  A2
  • Fitch:  A-
Wide business coverage and global or specialty risks
  • Offers high-risk insurance coverage
  • Provides an extensive range of insurance coverage products and services to both small and large business
  • Offers coverage options to businesses trading on a global scale
Nationwide
  • AM Best:  A+
  • JD Power:  
  • Standard & Poor’s:  A+
  • Moody’s:  A1
  • Fitch: A+
General liability insurance
  • Allows business owners to customize policies according to business size and industry
  • Provides immediate access to live agents and customer representatives
  • Provides customer service via phone and across the country through their network of agents
Virginia Farm Bureau
  • AM Best:  A-
  • JD Power:  N/A
  • Standard & Poor’s: N/A
  • Moody’s:  N/A
  • Fitch: N/A
Farmers
  • Easy to use website with several online features
  • Can pay the bill and file a claim online
  • Can obtain an online quote and save it from retrieving later
Hiscox
  • AM Best:  A
  • JD Power:  N/A
  • Standard & Poor’s: A
  • Moody’s:  N/A
  • Fitch: A+
Independent contractors and travelers 
  • Provides worldwide coverage as long as the business owner files it in the United States, Canada, or U.S. territory
  • Customizable coverage options for various industries
  • 14-day money-back guarantee for not filing any claims and not experiencing any business losses 

Detailed Reviews

If you don’t know the insurance provider to go with for small business insurance in Virginia, here’s an in-depth review of each insurance company:

The Hartford

The Hartford provides a wide range of business insurance coverage options with general liability insurance for business owners. Their workers compensation insurance provides several incredible benefits to employers and their workers. 

You can choose from two payment options, paying each year or paying as you go. Your workers can select their own medical provider for treating work-related injuries. Their most prominent option is Spectrum Business Owners’ Policy, which combines several different coverage options and allows you to customize it by adding additional coverage to the policy. 

USA Business Insurance

USA Business Insurance provides business insurance in Norfolk, VA, and other cities in the state. The company provides several types of insurance policies to small business owners. Their umbrella or excess liability coverage pays the medical expenses of any person injured on your business property. 

Their user-friendly website also stands out. They provide an easy to use online quote system. You can get a fairly accurate quote by selecting from the list of different insurance types and then selecting your insurance limit. 

State Farm

State Farm provides customized insurance coverage options designed for each phase of a business’s growth cycle. You can add professional liability, general liability, and other coverage options to your policy to suit your business needs. 

The company also provides specialized insurance to certain industries such as professional services, contractors, retailers, and restaurants. You can combine different coverage options with the business liability insurance in Virginia to qualify for discounts.

AIG

AIG has an incredible number of Virginia business insurance coverage options. Their middle-market property insurance is one of their most exclusive options.  This combines a tailored all-risk commercial property insurance coverage with their business interruption insurance coverage. The insurance company has tailored this option for risk factors experienced by midsize businesses. They are also popular for their cyber and crime insurance in the country. 

Nationwide 

Nationwide offers small business insurance in Virginia. They provide hired and non-hired Virginia vehicle business insurance to business owners who need to rent a car for a short duration or for workers using their own vehicle to run business errands. 

Businesses can choose to pay by debit card, credit card, check, or make payments online, over the phone, and through the mail. They also provide discounts for bundling two or more policies and for businesses that have been with them for several years and haven’t experienced a major business loss. 

Virginia Farm Bureau

Virginia Farm Bureau provides business insurance in Richmond, VA, and other cities. Business owners who register with the website as a member will receive several impressive deals and discounts.

The membership costs $40 each year and helps support farming and agricultural businesses across the country. They provide customized policies, offering them at competitive rates. 

Hiscox

Hiscox offers small business insurance in Virginia as well. The company provides a wide range of products and comprehensive business insurance coverage options with a user-friendly buying process. You can customize your insurance coverage depending on your industry. 

You can purchase Hiscox business insurance in Virginia via their website in real-time or through an agent. They also give a 14-day money-back guarantee, which most insurance companies don’t offer. If you travel several times a year for business, the insurance provider will cover you too. 

Pros & Cons

The Pros

The Cons

Final Verdict

FAQs

What type of insurance is required by Virginia laws?

Virginia requires business owners to obtain workers compensation insurance for their employees and commercial auto insurance if they rent, own, or use any car for business purposes.

How do I get business insurance in Virginia?

You can obtain business insurance in Virginia from a wide range of insurance companies in the state.

What business insurance do I need in Virginia?

The Virginia Small Business Administration (SBA) advises business owners to buy several different business insurance coverage options. They include getting property insurance, home-based liability insurance, and business income insurance. 

How much does business insurance cost in Virginia?

You can expect the business insurance cost in the state to be between $300 and $5,000 per year. The cost can vary based on different factors.

Does every small business have to pay unemployment insurance in Virginia?

If your small business has employees working in the state, you will need to pay the unemployment insurance (UI) tax. The rules for unemployment insurance tax liability in Virginia has a few regulations. You’ll be liable to pay unemployment insurance if you have one or more workers employed at any part of the day in 20 different weeks each year. You would also pay insurance if your total gross payroll each quarter is $1,500 or more, or you run a business that’s liable for UI taxes. 

That said, the rules differ for domestic or in-home workers, workers for some nonprofit businesses, agricultural and farmworkers.