What Type of Business Insurance Do You Need in Wisconsin?

Considered “America’s Dairyland,” Wisconsin is home to dairy farming, cheese-making, polka, and the badger. The state has over 6,000 named lakes, with coastlines on two Great Lakes (Michigan and Superior) and an interior of forests and farms spanning lush, green, rolling hills in its 65,496 square miles.

The state’s proximity to fresh water and rich natural resources contributed to its early growth in mining, fishing, and lumber. After the Civil War, the dairy industry rapidly expanded as many settlers from New York brought the skills needed for commercial dairy production. Today, Wisconsin’s leading industries are agriculture, manufacturing, and tourism.

Did you know? Wisconsin is #2 in nationwide milk production, generating 2.44 billion pounds of milk per month.

As of 2023, Wisconsin boasts over 450,000 small businesses, employing nearly one million people. According to the Wisconsin Economic Development Corporation’s Small Business Profile (2022), small businesses account for over 97% of all businesses in the state, making them a part of Wisconsin’s economy.

Whether you’re already a Wisconsin resident looking to open a new business,  relocating your existing business to the state, or considering adding a new location to your national business expansion plan, Wisconsin offers a business climate that encourages and rewards production and innovation. The state provides companies with refundable tax credits to support job creation, capital investment, training, and the location or retention of corporate headquarters.

Read on to uncover the three main types of small business insurance coverage you need as a Wisconsin-based organization, and learn how working with the right insurance carrier can provide peace of mind in your new venture.

Commercial Property Insurance Provides Protection From Wisconsin Weather

Due to its northern location, Wisconsin touts four diverse seasons of weather and related outdoor activities. While this does create an outdoor enthusiast’s paradise, it can also mean a risk event or loss for business operations. That’s where commercial property insurance comes into play, as it protects you from property and income losses resulting from a covered cause of loss, including a broad list of named perils such as fire, lightning, explosion, wind, and hail.

Commercial buildings are generally insured on a replacement cost basis, which includes the cost to replace the building with materials of similar kind and quality with no deduction for depreciation. Your independent insurance agent and insurance company will have valuation resources available to confirm the replacement cost of your building. 

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Although Wisconsin business owners may not have to worry about mudslides, hurricanes, or earthquakes, they do have to protect themselves from other catastrophic weather events such as tornadoes, hail, and lightning. These risks make commercial property coverage one of the most important types of insurance for businesses in this state.

Remember that the price of property insurance is heavily dependent upon the type of occupancy, the type of construction of the building, and the amount and type of public fire protection available. Other pricing factors may include the territory, private fire protection (extinguishers, sprinklers, etc.), housekeeping, and surroundings. 

Working with an experienced insurance carrier like Central Insurance, which has been writing commercial property insurance since 1876, is a great way to ensure you have the coverage your business requires.

Liability Insurance Covers Your Assets

Liability insurance, also called Commercial General Liability (CGL), is essential for businesses that work with clients, sell products, and advertise. It covers four categories of events for which you could be held responsible: bodily injury, damage to others’ property, personal injury—including slander and libel—and false or misleading advertising. In this sense, personal injury, refers to offenses such as libel, slander, using another’s advertising idea in your advertising, copyright infringement, etc.

This particular insurance coverage also pays for medical expenses sustained due to bodily injury caused by an accident at a premises you own or rent, next to a premises you own or rent, or because of your operations. The key component here is coverage can be paid out regardless of fault. One of the most common types of medical payment claims is slip-and-fall situations.

In addition, General Liability insurance provides for your defense costs and attorney fees arising from such claims. It excludes your employees who are covered by Workers’ Compensation.

Learn more: Does My Business Need Professional Liability Insurance?

Workers Compensation Insurance is Required in Wisconsin

The U.S. Bureau of Labor Statistics reported that private industry employers recorded  58,900 nonfatal workplace injuries and illnesses in Wisconsin in 2022.

Did you know? In 1911, Wisconsin adopted the Workmen’s Compensation Act. The law intended to require an employer to promptly and accurately compensate a worker for any injury suffered on the job, regardless of the existence of any fault or whose it might be.

According to the Wisconsin Department of Workforce Development, if employees get hurt on the job, employers can direct them to their insurance company’s Workers’ Compensation system for quality medical care, prompt payment of benefits, and an early return to work.

Wisconsin employers that meet specific requirements must carry Workers’ Compensation insurance unless they qualify for self-insured status, which ensures employers they won’t be sued for damages, medical care, or lost wages if their employees get injured on the job.

You must have Workers’ Compensation if any of your businesses meet the following criteria:

Employ three or more full-time or part-time employees. You must get insurance on the day you employ the third person.

Employ one or more full-time or part-time employees to whom you have paid combined gross wages of $500 or more in any calendar quarter for work done at one or more locations in Wisconsin. You must have insurance by the 10th day of the first month of the next calendar quarter.

If you are a farmer who employs six or more workers on the same day for any 20 days during the calendar year. You must obtain insurance by the 10th day after the 20th day of employment. A calendar year is January through December.

At Central Insurance, we aim to keep your employees safe while keeping your insurance costs low. How do we do it? Four simple steps:

Loss Control: Your personal loss control consultant will perform risk evaluation and ergonomic checks and provide a safety training library to help prevent Workers’ Compensation claims.

24/7 Nurse Hotline: Immediately following a workplace injury, call our Nurse Hotline to report your claim and speak to a registered nurse who will help direct you to the appropriate care.

Control Medical Costs: Through our expert partners in Medical Bill Review and Pharmacy Management, we monitor and ensure the most cost-effective treatment method is taken.

Return to Work: Our Return to Work program is designed to restore life to normal safely and quickly.

The Central Difference

An insurance policy is essentially a promise to pay for covered losses that occur to your assets. At Central, we take this promise seriously, from the minute you accept the policy to the moment a loss occurs and beyond. We will work with your independent insurance agent to meet your insurance needs and also provide you with continuous quality service as long as you are a Central policyholder. 

Looking for an independent Central agent in Wisconsin? Click here to locate one in your area.

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