Is business insurance required?

The federal government requires that all companies with employees have workers' compensation, unemployment and disability insurance. This Could Save You Money on Workers' Compensation Insurance. Document all of your staff's regular training sessions. Make sure employees approve reading safety materials.

And make sure your insurance company knows about the program. Make sure you have detailed and accurate job descriptions for your employees and make sure they don't perform work outside your classification. These Efforts Can Save Money on Workers' Compensation Insurance. An insurance agent familiar with workers' compensation can help you choose the right classifications.

As a business owner, you need extensive insurance protection for the various risks you face just by opening your doors. You may need a business protection policy for employees. You may need insurance to protect your assets and even the company itself. Liability insurance may also be necessary to protect your personal finances.

With the many types of insurance needed to operate a business safely, business owners overlook it at their own risk. This type of insurance may be appropriate for companies that serve customers for a fee, such as contractors in the construction industry. Most traditional commercial insurance policies don't cover the range of expenses incurred by a cyber attack. Depending on the nature of your business, it is advisable to evaluate other types of insurance for your company.

Errors and Omissions Insurance (E&O) is a form of liability protection to address losses that traditional liability insurance doesn't cover. While group insurance is an effective and, in many cases, less expensive option for many small businesses, in some cases, individual insurance may be the better option. If your company uses vehicles, whether they're owned by the company or by you or your employees, it's important and often required to have commercial auto insurance, since your personal auto policy probably won't cover significant damage or loss. Business insurance is a useful tool that can help small businesses manage losses resulting from unplanned or unforeseen events.

Individual insurance policies are purchased by an individual on a case-by-case basis; voluntary insurance is sponsored by the employer and is offered to all eligible employees through payroll deductions. Depending on the needs of the company, its employees and the company's offerings, group insurance plans can include a variety of coverages including, but not limited to, short- and long-term medical, dental, vision, life and disability insurance. In addition to the above, it's important to know that your state may require other types of commercial insurance. This form of insurance is designed to protect companies against employee claims related to violations of their legal rights as workers.

Commercial auto insurance covers the vehicle used for your business, protecting you and your company from liabilities and claims that may not be covered by a personal auto policy. Voluntary insurance allows your employees to help determine their own insurance benefits, which they pay out of pocket. This insurance must cover the building, as well as business interruption, assets, company documents, money and loss of income. In the event that a customer sues you for negligent action or for specific errors or omissions that occur as a result of business activities, E&O insurance can protect you against significant financial penalties.