There are several mandatory types of small business insurance required by law. Business insurance is typically mandated by state law to protect companies, involved stakeholders, and employees. Of course, specific types of insurance are generally required based on specific job operations, business type, and the commercial industry. As a business owner, you should know which types of insurance are required in the state your business operates in. Read on to learn about the different mandatory types of small business insurance required by law.
The first mandatory type of small business insurance required by law is liability protection. Liability insurance coverage protects you from lawsuits that any stakeholder might bring against your business. With this type of coverage, your business is fully protected against any claims filed for injury or damage that happened on your property. Plus, it will defend you from liabilities that were caused by your operations or products. Once you are ready to purchase liability protection, speak to your insurance agent to decide which level of coverage best suits your business. They may advise you to purchase professional liability insurance, which may be required in your state as well. Certainly, liability protection is a mandatory type of small business insurance required by law.
Next, unemployment coverage is a mandatory type of small business insurance required by law. Unemployment insurance covers you or your employees in the event of an unexpected job loss or termination. Unlike most types of business insurance, unemployment protection is not purchased from a brokerage or agent. Instead, you’ll pay for this type of coverage through federal and state unemployment taxes. Essentially, it is administered through a state program that allows you and your employees to receive valuable benefits. When deciding your tax burden, it will likely depend on various factors like your company’s standing, time in business, as well as your number of staff members. Surely, unemployment coverage is a mandatory type of business insurance required by law.
Worker’s Compensation Insurance
Another mandatory type of small business insurance required by law is worker’s compensation coverage. Worker’s comp covers any medical expenses or lost wages for employees who sustain workplace injuries. This type of coverage protects you and your company against potential lawsuits from disgruntled staff members. Before purchasing commercial protection, consult with an insurance agent to decide how much coverage your business needs. Of course, protection requirements may vary based on your industry and services performed. To assure you have the proper coverage, become familiar with state worker’s com laws to protect your business team. Especially, since there can are several types of workers compensation claims. Of course, another mandatory type of small business insurance required by law is worker’s compensation protection.
Commercial Auto Insurance
Additionally, commercial auto protection is another mandatory type of small business insurance required by law. You need commercial auto coverage for any business-owned vehicles. Commercial auto insurance covers any medical, damage or legal expenses in the event of an accident. In addition, you can purchase a policy that also covers vandalism and theft losses. Before purchasing protection, consult with an agent to choose a policy that best matches your company. After all, the most suitable coverage may vary based on your driving situation and or state requirements. To fully protect your company’s drivers, consider collision, comprehensive and uninsured motorist coverage. Surely, commercial auto insurance is another mandatory type of small business protection required by law.
Cyber Breach Insurance
Furthermore, cyber breach protection is another mandatory type of small business insurance required by law. Cyber breach insurance is strongly suggested for businesses that are technology driven. After all, valuable company data can be stolen or lost at any time due to malicious hackers or disgruntled employees. With breach protection, you can prevent hackers from targeting or stealing sensitive information from business computers. This includes medical, education or finance documents that are confidential to your organization. In the event of a damaging data attack, cyber breach coverage give you 24/7 access to a claims hotline specializing in loss recovery. Furthermore, the insurance can help protect your identity from cyber security criminals. Of course, cyber breach protection is another mandatory type of small business insurance required by law.
There are numerous mandatory types of small business insurance required by law. First, purchase liability insurance to protect your company from external lawsuits. Next, obtain unemployment coverage to protect yourself in the event of a job loss at your company. Additionally, worker’s compensation is critical in case any employees gets injured on the job. You’ll also need commercial auto protection for any business-owned vehicles that will be driven by your employees. Furthermore, cyber breach protection is important, especially if your business stores customer data on its computers. Follow the points highlighted above to learn about the various mandatory types of small business insurance required by law.