Workers’ compensation insurance (often called workers’ comp) protects your employees and your business in the event that an employee is injured or contracts an illness at work. It helps pay for medical care and lost wages associated with work-related injuries.

Workers’ comp covers work-related illness or injury. Coverage usually includes medical expenses, medical care costs, death benefits, disability benefits, lawsuits, and compensation for lost wages.

Although workers’ compensation insurance provides broad coverage for work-related injuries and illness, there are some exclusions. For example, injuries outside of work aren’t covered, and commuting to and from work generally isn’t covered, though there may be coverage in some states. Also, intentional injuries and those occurring as a result of substance abuse or intoxication aren’t covered.

The length of your workers’ compensation depends on your individual case, your prognosis, and how long it takes for you to recover from your injury or illness.

The amount you pay for workers’ compensation insurance is based on your total payroll. We charge you a percentage of your payroll for your workers' comp insurance. The percentage, also called your rate, is based on a variety of factors including your industry and the nature of work your employees perform. A workers’ comp audit is an industry-standard process that helps us ensure you’re paying the right amount for your coverage. It involves sending us documents that we request so that we can evaluate them and you pay based on your actual employee payroll during the policy period. If the actual payroll is higher than you estimated when you purchased the policy, we send you a bill for the difference. If the actual payroll is lower, we send you a refund for the difference, subject to minimum premiums.

Nearly all businesses with employees are required by law to have workers’ compensation insurance. Check out our States Served page for details. Our licensed insurance experts may also be able to provide guidance.

Per $100 in wages, the average cost of workers’ compensation insurance ranges from $.75 in Texas to $2.74 in Alaska. Premiums are calculated based on your company’s gross annual payroll. The higher your payroll, the higher your premiums.

As a self-employed business owner with no employees, you typically aren’t required by law to have workers’ comp insurance coverage. However, you may want or need coverage to protect your income or to meet the requirements of a business contract.

We offer workers’ comp insurance coverage in all states where we are allowed to do so. Four states require businesses to buy workers’ compensation insurance from a government entity, so we don’t sell policies there. Check out our coverage map for details.

This varies by location, but our insurance experts can help you understand the rules and requirements for your state.

You should tell us if you expand to a new state, get into new operations, or have a substantial increase in payroll. Our licensed insurance experts can tell you how your policy will be affected.

An umbrella policy “sits on top” of an existing liability policy and “kicks in” when the limit of that policy has been reached. The umbrella policy provides an added measure of protection—up to its limit—to coverage like general liability insurance, professional liability (E&O) insurance, or commercial auto insurance. For example, if you are required to pay a $125,000 claim but the underlying policy that covers the incident has a $100,000 limit, an umbrella policy can cover the additional $25,000. You must tell your insurance company about your liability policies for the coverage to respond.

Umbrella insurance can cover costs associated with things like bodily injuries and related medical expenses, damage to customer property, product liability, slander, libel, and copyright infringement. This includes defending against a lawsuit.

Like all insurance, an umbrella insurance policy has certain exclusions. They include damage to property your business owns or leases (since umbrella insurance is only for liability claims), contractual liability, and liability associated with armed conflicts or wars among others. Our insurance experts can provide details.

The cost of defending just one lawsuit can exceed the limit of liability policies, so it’s a good idea to have the added protection of umbrella insurance. Also, high limits may be required by a contract. Having an umbrella can be a cost-efficient way to have coverage for those limits, especially when the limit requirement is for multiple coverages.

The amount of umbrella insurance that a business should have depends on multiple factors. Our insurance experts can help you choose the right amount of coverage.

A performance bond is a type of contract bond that is often obtained in conjunction with a payment bond. A performance bond is a guarantee between 3 parties — the principal, the obligee, and the surety. The performance bond is issued to the contractor (the principal) guaranteeing their performance as agreed upon in the initial contract they bid on and won.

Bonds are a specialty form of insurance issued by a Surety company but they are different from a normal insurance policy because it is a contract between 3 people versus 2 and the person who may benefit from the claim is the third party. The primary person under the bond is the principal who is responsible for fulfilling any contractual promises, otherwise, a claim can be made to the surety. The surety would then pay the obligee, while the principal is responsible for paying the surety back.

A surety underwriter is responsible for checking financial information including credit history of both the business and the owners requesting the bond (principal). This financial information is the main deciding factor on a principal’s eligibility to obtain the bond. The surety underwriter will decide whether or not the principal has the capabilities and history to fulfill the promises agreed to in the contract. The underwriter is experienced in deciphering whether or not a principal has good enough standing to receive the bond and perform in good faith.

The indemnity agreement is legal document that maps out the Principal’s full obligations in regards to the relationship they have with the surety and the bond agreement. It explains how the Surety will recover any losses paid out on behalf of a claim made against the Principal’s bond. The indemnity will also explain that the Principal is the responsible party under the bond and is required to payback the surety for any claims they incurred to do the Principal failing to meet the obligations as agreed upon in the contract with the obligee.

While longevity and financial stability will help a contractor get the best terms for a performance bond, it is not required that a contractor have a certain number of years in the industry under his belt. A new contractor can be bonded through various specialty programs that are built to help small businesses grow. Between the SBA bond guarantee program or specialty programs for hard to place bonds, a new contractor can easily get bonded with the help of The Surety Place.

The cost of a performance bond will vary based on financial stability and business history but most performance bonds cost between 1% and 3% of the contract price. Bonds can cost a contractor more if personal credit is poor because it becomes a higher risk for the surety to do business with someone who is considered “hard to place.” Most sureties have specialty programs to help contractors get the lowest premium with the best terms possible.

Yes, credit checks are required for all performance bonds. An analysis of a contractors credit history is part of the performance bond underwriting and review process. Financial statements both for the business and the contractor’s personal finances are also required for performance bond underwriting. This will help the surety decide whether or not the contractor qualifies for certain express programs based on excellent credit alone. Financial history and credit history will determine how the surety prices and underwrites the bond.

When a claim is made against a performance bond, the surety will conduct a full investigation as quickly as possible in attempt to avoid any further damage or loss. Just because a claim is made, does not always mean the principal is at fault and will need to pay. It is after the investigation is performed that the surety will decide if the claim is valid and the principal is at fault and in which they will be reminded of their financial obligations under the indemnity agreement. It is at this point that the principal must satisfy the claim and if he/she chooses not to, then the surety will arrange a settlement with the obligee and collection proceedings will be implemented against the principal to ensure the surety does not incur any financial loss. All claims must be handled as quickly as possible as an outstanding claim can significantly hurt your business.

A performance bond is a type of contract bond that is often obtained in conjunction with a payment bond. A performance bond is a guarantee between 3 parties — the principal, the obligee, and the surety. The performance bond is issued to the contractor (the principal) guaranteeing their performance as agreed upon in the initial contract they bid on and won.

Bonds are a specialty form of insurance issued by a Surety company but they are different from a normal insurance policy because it is a contract between 3 people versus 2 and the person who may benefit from the claim is the third party. The primary person under the bond is the principal who is responsible for fulfilling any contractual promises, otherwise, a claim can be made to the surety. The surety would then pay the obligee, while the principal is responsible for paying the surety back.

A surety underwriter is responsible for checking financial information including credit history of both the business and the owners requesting the bond (principal). This financial information is the main deciding factor on a principal’s eligibility to obtain the bond. The surety underwriter will decide whether or not the principal has the capabilities and history to fulfill the promises agreed to in the contract. The underwriter is experienced in deciphering whether or not a principal has good enough standing to receive the bond and perform in good faith.

The indemnity agreement is legal document that maps out the Principal’s full obligations in regards to the relationship they have with the surety and the bond agreement. It explains how the Surety will recover any losses paid out on behalf of a claim made against the Principal’s bond. The indemnity will also explain that the Principal is the responsible party under the bond and is required to payback the surety for any claims they incurred to do the Principal failing to meet the obligations as agreed upon in the contract with the obligee.

While longevity and financial stability will help a contractor get the best terms for a performance bond, it is not required that a contractor have a certain number of years in the industry under his belt. A new contractor can be bonded through various specialty programs that are built to help small businesses grow. Between the SBA bond guarantee program or specialty programs for hard to place bonds, a new contractor can easily get bonded with the help of The Surety Place.

The cost of a performance bond will vary based on financial stability and business history but most performance bonds cost between 1% and 3% of the contract price. Bonds can cost a contractor more if personal credit is poor because it becomes a higher risk for the surety to do business with someone who is considered “hard to place.” Most sureties have specialty programs to help contractors get the lowest premium with the best terms possible.

Yes, credit checks are required for all performance bonds. An analysis of a contractors credit history is part of the performance bond underwriting and review process. Financial statements both for the business and the contractor’s personal finances are also required for performance bond underwriting. This will help the surety decide whether or not the contractor qualifies for certain express programs based on excellent credit alone. Financial history and credit history will determine how the surety prices and underwrites the bond.

When a claim is made against a performance bond, the surety will conduct a full investigation as quickly as possible in attempt to avoid any further damage or loss. Just because a claim is made, does not always mean the principal is at fault and will need to pay. It is after the investigation is performed that the surety will decide if the claim is valid and the principal is at fault and in which they will be reminded of their financial obligations under the indemnity agreement. It is at this point that the principal must satisfy the claim and if he/she chooses not to, then the surety will arrange a settlement with the obligee and collection proceedings will be implemented against the principal to ensure the surety does not incur any financial loss. All claims must be handled as quickly as possible as an outstanding claim can significantly hurt your business.

No, but failing to carry general liability insurance could result in you having to pay for all the expenses related to a claim against your business. For example, while visiting your office a client slips on a rug and breaks their hip. Without general liability insurance, you could be solely responsible for all the medical bills and legal fees. So, even though it’s not required by law, it should be a priority for your business.

Yes. You choose the amount of your general liability deductible when you get a quote. A deductible is a fixed out-of-pocket expense you agree to pay before your coverage starts to pay.

General liability insurance only pays for third-party damages, not yours. You’re considered the “first-party”. The “third-party” is the one that has a claim against you. This means general liability won’t cover your property or equipment against theft or damage.

To protect your property, we offer Business Personal Property coverage as a part of a Business Owners Policy.

Yes. Since general liability premiums are considered “a cost of doing business”, they usually can be written-off at tax time. That said, it’s a good idea to consult a tax professional to make sure.

No. General liability only provides coverage for claims against you by others for their bodily injuries or damage to their property. To protect from claims against you for professional neglect or mistakes, you need to have professional liability insurance.

A certificate of insurance (COI) is an official document that lists all coverages and limits on an insurance policy. Essentially, it proves that you have insurance and details your policy coverages and limits.

Yes. Progressive can help you get business insurance, including general liability, in all states except Hawaii.

Yes. High-risk businesses can get general liability insurance in a specialty market called excess and surplus lines (E&S). E&S insurance provides coverage for businesses the standard market doesn’t protect.

Yes. While personal auto insurance doesn’t cover a vehicle if it’s being used for business purposes, commercial auto insurance covers your vehicle for both commercial and personal use.

An accident doesn’t affect the rate of your current policy, but it could affect your rate when your policy is renewed. Your policy is rewritten every time it expires to reflect your current situation. Accident-related rate changes are determined by various factors such as who was at fault, the cost of the claim and your accident history. So, accidents are considered when determining your rate, but an increase isn’t guaranteed.

Maybe. Deductibles apply whenever your policy’s collision or comprehensive coverages are used, regardless of who is at-fault. If the at-fault party was insured, we’ll attempt to recover your deductible from their insurance company. If they didn’t have insurance, we’ll attempt to collect it directly from them. Either way, the process of recovering your deductible from the other party is called “subrogation”.

Not necessarily. A commercial auto policy covers the vehicle and any permanently attached items, such as a ladder rack or a truck bed toolbox, but it doesn’t cover the ladders and tools themselves. For the contents of your vehicle to be covered, you’d need a business liability policy with an inland marine endorsement.

No. No matter what type of commercial vehicle you have, the shop you choose for repairs is your decision. You can choose your own shop or one of ours. For heavy vehicles, like semi-trucks, we maintain a countrywide network of over 100 specialized shops. Each has been evaluated for work quality, speed and reliability. Additionally, Progressive provides a Limited Lifetime Repair Guarantee for repairs completed at one of these shops.

Yes, most likely. Most personal auto insurance policies won’t cover losses that occur while delivering for a fee. This includes pizza delivery and most other delivery services. If you don’t have a commercial policy on your vehicle and you get into a work-related accident, your claim might be denied and you could be held personally responsible for the damages. A commercial auto policy can prevent this from happening.

Yes. Progressive insures commercial vehicles in all 50 states. We currently don’t write policies in Washington D.C.

Flooding is the most frequent and expensive natural disaster in the U.S., according to the Federal Emergency Management Agency (FEMA). Yet, most people don’t realize that their homeowners insurance doesn’t typically cover flood. With more than 20 percent of the National Flood Insurance Program’s (NFIP) claims coming from outside high-risk flood areas those who live in areas with low-to-moderate flooding risk should understand their risk and consider flood insurance.

The way water flows and drains where you live can change due to building development, changing weather patterns, wildfires, or other disasters that alter the terrain. As a result, the government is constantly evaluating risks and revising flood maps to keep up with these changes. It is a good idea to check the maps annually for updates or sign up to receive an alert when your communities’ flood map is updated.

NFIP coverage is typically around $700 a year in high-risk areas. Property owners located in low-to-moderate risk areas should ask a trusted insurance agent or company if they are eligible for the Preferred Risk Policy, which provides flood insurance protection at a lower cost than a standard policy in a high-risk area..

Typically not. But while standard home insurance doesn't cover flood damage, it generally would provide coverage for additional living expenses if your home was uninhabitable because of wind damage or other perils associated with the flood. It is a good idea to ask your insurance agent or company to explain the specifics of what your policy covers in this regard.

The SCDOI advises homeowners to talk to a trusted, insurance agent or company to discuss what type of coverage is best.

You can purchase flood insurance whenever, but most policies have a 30-day waiting period before the coverage goes into effect. Hurricane season starts June 1, which means homeowners and renters need to buy a policy in May to be covered in time for the start of hurricane season. Any damage done before the effective date of your policy will not be covered.

Damage to your home’s foundation likely won’t be covered under your standard homeowners insurance policy, but it depends on what causes the damage. While faulty construction won’t be covered, water damage caused by a burst pipe may be. Be sure to check with your insurance provider to see what your particular policy covers.

If a plumbing issue arises, your homeowners insurance may cover any water damage that occurs as a result; however, the costs to repair the actual plumbing issue, will likely not be covered under your standard policy.

Mold, or biological deterioration, coverage depends on the source of the mold. If the mold is a result of a loss covered by your policy, such as a washing machine or dishwasher that breaks suddenly your homeowners insurance will likely cover the damage. However, the amount of protection for cleaning up the related mold is usually limited. If the mold is the result of a flood, your homeowners policy will likely not provide coverage since floods are not covered by standard homeowners insurance.

The personal liability coverage within your homeowners insurance will typically cover a dog bite, up to the liability limits of the policy. The medical payments portion of your policy may also help to cover medical expenses associated with injuries sustained by the individual. However, coverage could depend on the breed of your dog or if your dog has a previous bite history.

Unfortunately, termite damage is not usually covered by your homeowners insurance, nor are any other rodent or pest infestations that may occur. Termites and other instances involving pests are considered to be a maintenance issue that could be prevented by taking the proper precautions.

It’s always best to thoroughly review your homeowners insurance policy to understand what is and isn’t covered. To learn more about homeowners insurance coverage or to get a quote, check out our homeowners coverage options today.

Renters insurance is a type of insurance policy that pays out in the event that your belongings need to be repaired or replaced due to damage or theft.

Any renter who has possessions they can’t afford to repair or replace – or simply don’t want to foot the full bill for after an incident – should have renters insurance. Think of all of the stuff you have, and how much it would cost to replace everything in the event of, say, a burst pipe. That can add up quickly, and renters insurance can help protect against any unforeseen expenses.

Renters insurance and homeowners insurance are similar – both protect your possessions – with one key difference. Homeowners insurance also protects the structure – the building itself. Renters insurance primarily covers belongings. You also generally get some liability coverage, but the policy doesn’t protect the apartment. The building’s landlord will have their own insurance to cover damage to the building.

Renters insurance isn’t legally required. However, it’s not unusual for landlords to require renters insurance as a condition of signing a lease. They are allowed to do this, so when you’re filling out a rental application be ready to buy renters insurance if you haven’t already.

A renters insurance home inventory is an inventory of everything you own that would be potentially covered by your renters insurance policy. This is helpful when filing a claim, as some insurers may request proof of ownership of an item. There are many home inventory apps that let you photograph and document items straight from your smartphone.

An annuity is a financial contract between an insurance company and a buyer — typically an investor or retiree. In exchange for a lump sum or monthly payments toward the principal, an insurance company will pay out income through a series of payments or a one-time lump sum. An annuity is meant to provide a guaranteed stream of income through a set period of time or until an annuitant’s — or an annuity owner’s — death. Annuity savings are tax-deferred and can accumulate interest over time.

Annuities have a tax-deferred status, meaning that while interest accrues on the savings, they are not taxed until withdrawn. This status helps to increase the amount of earnings in an annuity account.

A unique benefit to an annuity is the death benefit. Should an annuity owner die before their annuity disburses all payments, the remaining assets can transfer to a spouse or surviving beneficiary. If you choose not to have a beneficiary, upon your death all remaining annuity assets will be surrendered to the issuing insurance company.