Frequently Asked Questions about Business Insurance

What business insurance policies are legally or contractually required in PA & MD?

In both Pennsylvania and Maryland, Workers’ Compensation insurance is legally mandated for nearly all businesses that employ staff, ensuring injured team members receive proper medical care and lost wage support. Additionally, any vehicle operated for business tasks must be backed by Commercial Auto insurance.

Beyond state regulations, landlords, financial lenders, and enterprise clients frequently require proof of General Liability, Commercial Property, or Cyber Liability coverage before signing a lease, approving a loan, or awarding a vendor contract.

Why shouldn't a business rely on standard homeowners insurance for work-from-home operations?

Standard homeowners and renters policies explicitly exclude claims tied to commercial activities. If a client visits your home office and suffers an injury, if business inventory is damaged, or if sensitive customer data on your home network is compromised, a personal insurance policy will not extend protection.

A dedicated business liability policy or home-based business rider keeps your personal assets, property, and savings completely separated and protected from business liabilities.

What is the distinction between General Liability and Errors & Omissions (E&O) insurance?

• General Liability addresses physical accidents—such as third-party bodily injuries, accidental physical damage to a client's property, or slip-and-fall incidents on your premises.
• Errors & Omissions (E&O) addresses service-based claims—protecting your agency if a client alleges financial loss caused by professional advice, missed deadlines, administrative oversights, or breach of contract.
  For example: If a contractor accidentally damages a homeowner's wall while working, General Liability responds. If an advisor provides an incorrect project specification that causes a client financial delay, E&O responds.

Does commercial property insurance protect against severe local flooding in PA & MD?

No. Standard commercial property insurance policies exclude rising groundwater, storm surge, and surface flooding. Businesses situated near regional waterways or flood-prone zones in Pennsylvania and Maryland need a specialized Commercial Flood policy to protect physical buildings, tools, machinery, and inventory against water damage.

What sets Kelly Glass Insurance apart from buying direct from a national online vendor?

Online direct-to-consumer platforms typically offer automated, one-size-fits-all policies that leave dangerous coverage gaps. As an independent agency based in Lebanon, PA, Kelly Glass Insurance takes an advisory approach:

• Personalized Risk Analysis: We sit down with you to review your specific operations, industry exposures, and growth plans.
  
• Multi-Carrier Selection: We leverage relationships with top regional and national underwriters (such as Nationwide and Progressive) to build a custom solution for your needs.
  

How often should a small business review its commercial insurance policies?

We recommend reviewing your coverage annually, or whenever your business hits a major operational milestone. Key triggers for an immediate coverage review include hiring new employees, purchasing new equipment or vehicles, moving to a larger facility, adding a new service line, or expanding service into new states like MD or PA.