Most states require businesses with employees to purchase workers’ compensation insurance. Sometimes other policies are required, as well.
Most types of commercial insurance are optional. However, depending on the state laws where your business operates, you might be required to purchase:
Every state except Texas requires businesses with employees to purchase workers’ compensation insurance. However, some states make exceptions for businesses with few employees. For example, it's required in Georgia only when a business regularly employs three or more people. In most other states, every business with employees is required to carry workers’ comp, even for part-time employees.
You’re likely familiar with the law and insurance requirements for your personal vehicle. Similarly, every business-owned vehicle must be covered by commercial auto insurance. This policy provides protection if an employee gets into an auto accident. It can cover injuries, property damage, and legal fees. A hired non-owned policy can provide additional coverages if you or your employees use personal vehicles for business purposes.
Even when it’s not required by law, business owners might need to purchase commercial insurance to sign a lease, attract clients, or get a license for their profession. Acquiring insurance for your small business allows you to:
Apply for licenses. Many licensing bodies consider an active insurance policy a requirement of becoming licensed.
Attract big client contracts. Clients may require you to have professional liability insurance (also called errors and omissions insurance).
Buy commercial real estate or expensive equipment. Damaged property or equipment can be easily covered with adequate property insurance.
Businesses with unique risks may benefit from other types of insurance. A licensed Insureon agent can help you find the appropriate insurance for your type of business.
Complete Insureon’s easy online application today to compare small business insurance quotes from top-rated U.S. carriers. Once you find the right policy for your small business, you can begin coverage in less than 24 hours.