Check what kind of insurance your business might need. Don’t just use this short summary. Talk to a lawyer or expert for more help.
Step 5 Purchase Business Insurance
Business insurance protects your company from financial losses and is an important part of running a business. The Maryland Insurance Administration can help you learn about your insurance options, including life, health, disability, workers’ compensation, automobile, homeowners, and property insurance.
Types of Business Insurance
The type of insurance you need depends on your business size, number of employees, industry, and what you want to cover. Common types include:
- Commercial Auto Insurance
- Required for all vehicles registered in Maryland, including business vehicles.
- Covers medical costs and damages to others (bodily injury and property damage) if you cause an accident.
- Includes Uninsured/Underinsured Motorist and Personal Injury Protection (PIP) coverage, as required by Maryland law.
- Offers higher liability limits than personal auto insurance and may cover rented or non-owned vehicles.
- Property Insurance
Protects your business’s physical assets (e.g., buildings, equipment) from damage or loss. - Business Interruption/Continuation Insurance
Covers lost income and expenses if your business must temporarily close due to a covered event (e.g., fire or natural disaster). - Liability Insurance
Protects against claims for harm or damage caused by your business operations. - Workers’ Compensation Insurance
Required for most businesses with employees. Covers medical costs and lost wages for employees injured on the job. - Home-Based Business Insurance
- Home-based businesses need specific coverage for business assets and risks.
- Standard homeowners’ insurance may not cover business-related losses, so check with an insurance professional to ensure proper protection.
- Other Insurance
Depending on your business, you may need extra coverage like flood insurance or surety bonds.
How to Get Started
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Contact the Maryland Insurance Administration
Call 410-468-2000 for guidance on insurance options. -
Review our Commercial Insurance webpage
This page provides detailed information on insurance types. -
Consult an Expert
Talk to an insurance agent, attorney, or professional advisor to choose the right coverage for your business.
Important Information
Keep Your Business Details the Same
When you buy insurance, use the same business details as your SDAT, IRS, and other registrations to avoid confusion and delays. This includes:
- Business Name: use the same spelling, punctuation, and format.
- Other Details: use the same addresses and other information.
Using the same details everywhere avoids confusion and delays.
Don’t Rely Solely on This Guide
This is a general overview. Your business may have unique needs. Always consult an insurance professional or attorney to ensure you have the right coverage.
More Resources
- Maryland Insurance Administration: Contact at 410-468-2000 for assistance.
- Business Owner’s Guide to Commercial Insurance