Business insurance for small businesses
Get the guidance you need to choose the insurance that’s right for your business with help from Automatic Data Processing Insurance Agency, Inc.
Your business insurance choices made simple
You didn’t start your business to deal with insurance. ADPIA® did.
With ADPIA, you get the guidance you need to choose the insurance you may be required to have, as well as the business insurance that’s right for you.
Stay confident with guidance you need, when you need it
ADPIA’s responsive, licensed insurance professionals can help support you, including:
- Evaluating your coverage needs and opportunities — to protect you and your business from incidents or events that could result in harm to you, your employees or your company
- Explaining the types of insurance required of and available to you, with costs and advantages of each
- Discussing payroll integration options to help improve cash flow and accuracy, and to help save time
- Connecting you with top-rated, high-quality insurance carrier partners in your area — to find the most comprehensive policies that suit your needs, at competitive rates
- Providing workers' compensation audit assistance, support with claims, and risk and safety evaluations
Reach out to an ADPIA professional to see how we can support you and your business.
Help improve cash flow with payroll and workers’ comp integration
If you’re an ADP® payroll client, you can save time and improve cash flow by automating workers’ compensation insurance premium payments.
ADP’s Pay-by-Pay® Premium Payment Program** calculates and collects your premium payments each pay period, based on the actual payroll processed — reducing the risk of over or under payments. It also decreases the risk of late payment policy cancellations, since payments are sent directly to your carrier.
Integrating payroll with workers' compensation may help with your annual carrier audit.
Learn more about Pay-by-Pay.
ADPIA® Workers’ Compensation Insurance
Pay-by-Pay® may eliminate premium binder payments, improving your cash flow
Get quick, easy access to certificates of insurance — 24/7 ***
Simplify everything about insurance — from selecting the right carriers and policies to accessing reports and analytics, changing employee classifications and obtaining certificates of insurance — whenever you need to.
If you use RUN Powered by ADP® and the Pay-by-Pay® Premium Payment Program** for workers’ compensation insurance, you get real-time access to proof of insurance documents, so you can:
- Get proposals out on time
- Get and keep your employees working at customer locations
- Manage your certificates and print, email or download them
Read more about how we can help you with mandatory workers’ compensation insurance.
How ADP works with others like you
Now, I pay workers’ comp premiums based on my real payroll data, not an estimate. That helps me avoid paying a big deposit when my policy renews, and makes the audit at the end of the year easier.
Cassie Fishkin Owner, The Spot
Business insurance FAQs
What does business insurance cover?
Business insurance covers a wide range of risks and exposures depending on the specific policy types you choose:
- General liability insurance protects against third-party claims for bodily injury, property damage and personal injury, including legal defense costs and settlements.
- Commercial property insurance covers business buildings, equipment, inventory and furnishings against fire, theft, vandalism and weather damage. It often includes business income protection when operations are disrupted.
- Workers' compensation covers medical expenses and lost wages for employees who suffer work-related injuries or illnesses, while also protecting employers from injury-related lawsuits.
- Professional liability insurance protects service providers against claims of professional negligence or errors.
- Cyber liability insurance addresses data breaches and technology-related risks.
However, all policies have exclusions, such as intentional criminal acts, flood damage (requiring separate coverage) and normal wear and tear. The wording of each policy will always dictate the specific coverage for a business.
Why do I need business insurance?
Business insurance is essential for both legal compliance and financial protection. Most states require employers to carry workers' compensation. If vehicles are used in business operations, commercial auto coverage may also be required. Beyond these legal requirements, business liability insurance helps protect your personal assets (especially critical for sole proprietors) and business assets from costly lawsuits, accidents and unforeseen events that could otherwise bankrupt your operation.
Additionally, insurance for business enables growth opportunities because many clients, contracts and commercial leases require proof of coverage. Obtaining it demonstrates credibility and professionalism and helps build customer confidence.
Does business insurance cover lawsuits?
Generally, yes, but coverage depends on the type of lawsuit and the language of the specific business insurance policies you carry:
- General liability insurance covers third-party lawsuits for bodily injury, property damage and personal/advertising injury, including legal defense costs, settlements and court-ordered judgments.
- Professional liability insurance covers lawsuits alleging professional mistakes or negligence in service delivery.
- Employment practices liability insurance protects against discrimination, harassment and wrongful termination claims.
- Cyber liability insurance addresses lawsuits related to data breaches or privacy violations.
- Workers' compensation provides lawsuit protection for employee injury claims.
The key is to ensure your business liability insurance portfolio addresses the specific types of legal risks your business faces.
Do I need business insurance if I'm a sole proprietor?
Comprehensive business insurance is necessary for sole proprietors because, unlike some other business structures, personal assets and business assets are not legally separate. Consequently, your home, savings and personal belongings are all at risk in business-related lawsuits. Essential coverage for sole proprietors includes general liability insurance, professional liability insurance if the business provides services or advice, and commercial property insurance for business equipment and inventory.
Should online businesses have business insurance?
Lack of a physical storefront does not negate the need for business insurance. Online businesses that handle customer data, process payments or rely on digital systems are susceptible to data breaches, hacking attempts and system failures. These risks can result in significant legal costs, regulatory fines and customer notification expenses – all of which may be devastating to an unprepared business. Recommended coverage includes a business owner's policy combining general liability and property insurance, cyber liability insurance, professional liability insurance for consultants and service providers, and product liability coverage for e-commerce retailers.
Does my homeowner’s insurance cover my business if my office is at home?
Homeowners insurance is insufficient for most home-based business operations. The minimal coverage provided leaves significant gaps, which must be filled by business insurance for adequate protection. Additionally, homeowner policies have business exclusions, including customer injuries during business visits, professional liability claims, product liability issues and business-related auto accidents. Ultimately, people running a home-based business must consider their business size, customer interactions and equipment values when choosing insurance.
Can ADP help me get business insurance in my state?
ADP’s affiliate, Automatic Data Processing Insurance Agency, Inc.(ADPIA®) has served over 200,000 businesses nationwide since 1991 and is licensed in all 50 states. Our agents understand each state’s specific requirements and can help you manage varying regulations, monopolistic systems and compliance requirements.
As one of the top 30 business insurance agencies in the country for three years running, ADPIA provides access to A-rated carriers. Available coverage includes workers' compensation, general liability insurance, business owner's policy, professional liability, commercial auto insurance and group health insurance.
ADPIA can also integrate insurance premium payments with ADP payroll services. This integration allows employers to spread workers' compensation premiums across payroll periods, eliminating large upfront deposits.
Does an LLC need business insurance?
Although LLCs provide some personal asset protection, business assets, equipment, and operations remain fully exposed to risks that only proper business insurance can address. It may help to think of LLC status as the foundation upon which business insurance builds complete protection.
Required coverage includes workers' compensation in most states for LLCs with associates, commercial auto insurance for business vehicles and professional liability insurance where mandated by licensing requirements. Recommended coverage includes general liability insurance for third-party claims, commercial property insurance for business assets and cyber liability insurance for data-related risks.
*Automatic Data Processing Insurance Agency, Inc. (ADPIA) is an affiliate of ADP, Inc. All insurance products will be offered and sold only through Automatic Data Processing Insurance Agency, Inc., its licensed agents or its licensed insurance partners., 1 ADP Blvd., Roseland, NJ 07068. CA license #0D04044. Licensed in 50 states. Certain services may not be available in all states.
**ADP's Pay-by-Pay® Premium Payment Program is available to clients who have purchased workers’ compensation insurance through ADPIA with participating carriers and who use RUN Powered by ADP® payroll through ADP.
***Certificates of insurance are available for ADP clients who purchase workers’ compensation through ADPIA and use the RUN Powered by ADP® payroll service. Excludes waivers of subrogation or any other special requirements that may be needed in a certificate of insurance. You must contact ADPIA’s client services if your certificate request includes a waiver of subrogation. Additional fees may apply.