By Mauldin Insurance Group  |  Lexington, South Carolina  |  2026

Lexington's business community is thriving. From contractors and retail shops to restaurants, home service providers, and professional services firms, the Midlands economy has one of the strongest small business ecosystems in South Carolina.

But with business ownership comes risk — and the wrong insurance decision can expose everything you've built to a single lawsuit, fire, or accident. At Mauldin Insurance Group, we help Lexington businesses find the right commercial coverage without overpaying for policies they don't need or going without the ones they do.

This guide breaks down the core types of business insurance, which ones apply to common business types in our area, and what you can expect to pay.

 

The Core Types of Business Insurance

General Liability Insurance

This is the foundation of any business insurance program. General liability covers your business if a third party — a customer, vendor, or member of the public — suffers bodily injury or property damage as a result of your operations, products, or completed work.

Examples: A customer slips and falls in your shop. You accidentally damage a client's property while performing a service. A product you sold causes injury. All covered under general liability.

Most Lexington small businesses carry $1,000,000 per occurrence / $2,000,000 aggregate. Many landlords and clients require a certificate of insurance showing this coverage before doing business with you.

Annual cost for most small businesses: $400 to $1,500 per year depending on industry, revenue, and risk level.

Business Owners Policy (BOP)

A Business Owners Policy bundles general liability and commercial property coverage into a single affordable package. It's designed specifically for small to mid-sized businesses and is typically less expensive than buying the two coverages separately.

Commercial property coverage within a BOP protects your building (if you own it), equipment, inventory, furniture, and other business property against fire, theft, vandalism, and most weather events.

Who it's ideal for: Retail stores, restaurants, offices, service businesses with a physical location, and any business that owns equipment or inventory.

Commercial Auto Insurance

Personal auto insurance does not cover vehicles used for business purposes. If you or your employees drive for business — making deliveries, driving to job sites, transporting equipment, or visiting clients — you need commercial auto coverage.

This is one of the most commonly overlooked gaps in small business insurance. A single accident in a vehicle used for business that's only covered by personal auto can result in a coverage denial and significant personal financial exposure.

Lexington contractors, landscapers, home service providers, and delivery businesses almost universally need commercial auto coverage.

Workers Compensation

South Carolina law requires most businesses with four or more employees to carry workers compensation insurance. It covers medical expenses and lost wages for employees who are injured on the job — and it protects the business from most employee injury lawsuits.

Even if you have fewer than four employees, workers comp is worth considering. A serious employee injury without coverage can be financially catastrophic for a small business.

Professional Liability / Errors & Omissions

If your business provides professional services or advice, general liability isn't enough. Professional liability — also called errors and omissions (E&O) insurance — covers claims that your work, advice, or services caused a financial loss to a client.

Who needs it: Consultants, accountants, real estate professionals, IT service providers, designers, engineers, insurance agents, and any business where clients rely on your professional judgment.

Commercial Umbrella Insurance

A commercial umbrella policy sits on top of your other liability coverages and provides an additional layer of protection — typically $1 million to $5 million — that kicks in when an underlying policy's limit is exhausted.

For businesses with significant assets, customer traffic, or operations that carry higher liability exposure, an umbrella policy is one of the most cost-effective ways to increase protection.

 

Business Insurance by Common Lexington Business Type

Contractors and Home Service Businesses

If you're a plumber, electrician, HVAC technician, roofer, landscaper, or general contractor in the Lexington area, you typically need: general liability, commercial auto, workers compensation (if you have employees), and tools and equipment coverage. Many jobs will also require you to show proof of insurance before starting work.

Retail Stores and Restaurants

A Business Owners Policy is usually the right starting point — it covers your property, inventory, and general liability in one package. Add workers comp if you have employees, and consider food spoilage coverage for restaurants and liquor liability if you serve alcohol.

Professional Services (Consultants, Accountants, Designers, etc.)

General liability plus professional liability (E&O) is the core combination. If you have a physical office, add commercial property. If employees drive on company business, add commercial auto.

Home-Based Businesses

This is one of the most dangerous coverage gaps in small business insurance. Your homeowners policy almost certainly excludes business property and business liability. A client who visits your home and is injured, or business equipment damaged in a fire, is likely not covered under your personal homeowners policy. A home-based business endorsement or separate business policy fills this gap.

Important for Lexington Home-Based Businesses South Carolina has seen significant growth in home-based businesses. If you operate any business activity from your home — even part time — talk to us about how to close the coverage gap between your homeowners policy and your business exposure.

 

 

What Does Business Insurance Cost in Lexington?

Costs vary significantly by industry, revenue, number of employees, and coverage levels. General ranges for Lexington small businesses:

• General liability only (low-risk service business): $400 to $900/year
• Business Owners Policy (small retail or office): $800 to $2,000/year
• Contractor general liability (mid-size): $1,200 to $3,500/year
• Commercial auto (1 vehicle): $900 to $1,800/year
• Workers compensation (varies by payroll and class code): $0.75 to $3.00+ per $100 of payroll
• Professional liability/E&O: $600 to $2,500/year depending on profession and revenue

Bundling multiple coverages with one carrier often yields meaningful discounts. We shop your business coverage across multiple carriers to find the best combination of protection and price for your specific operation.

 

Common Business Insurance Mistakes in the Midlands

• Relying on personal auto insurance for business vehicle use — a common and expensive mistake
• Skipping workers comp because you have fewer than four employees — creates personal financial exposure
• Assuming a homeowners policy covers home-based business activity — it almost never does
• Buying only the minimum required by a client or landlord rather than what your business actually needs
• Not updating coverage as the business grows — a policy written when you had $200,000 in revenue may be inadequate at $800,000
• Choosing the cheapest policy without understanding what events trigger coverage versus exclusions

 

Why Lexington Businesses Choose Mauldin Insurance Group

We're local — we understand Lexington's business environment, the industries that are growing here, and the risks specific to operating in the Midlands. As an independent agency, we're not tied to a single carrier's products. We shop the commercial market to find the right coverage at the right price for your business.

We also take time to understand what you do, how you operate, and what would happen to your business if a major claim hit. That context lets us build a program that actually protects what you've worked to build.

 

Get a Free Business Insurance Review Whether you're just starting out or reviewing an existing program, we'll walk through your coverage needs and shop the best options available for your Lexington business.   📞 Call or Text: 803-920-8827 🌐 MauldinInsuranceGroup.com 📍 100 Old Cherokee Rd, Lexington, SC 29072