Are You Legally Required to Carry Business Insurance?

Are You Legally Required to Carry Business Insurance?

Most are aware that there are laws requiring drivers carry at least minimum levels of automobile liability insurance. You may even know that your mortgage lender will require you carry homeowners’ insurance as long as you owe on your mortgage. But what about if you own a business? Are there circumstances when you may be required by law to have insurance on your business? The short answer is yes. The full answer is a bit more complicated however. Here are when and why you may be required to have business insurance.

If You Have Employees

If your business has employees, federal law requires you carry workers’ compensation, disability and unemployment insurance. If an employee is injured performing work-related duties and you don’t have insurance, you could be subject to fines.

If You Have Loans to Finance Your Business

If you have borrowed money to finance your business location, buy inventory or purchase equipment, your lending institution will likely require you carry business insurance to protect their interests. This insurance may not be a legal requirement but your lender may require it all the same.

If You Own Your Location

If you own a bricks and mortar location for your business, there are a couple of circumstances when insurance may be required. The first is if you have a loan on your property. Your lender will likely require insurance. The second is if you live in a state that requires business owners who own their properties to carry liability or business property insurance if you live in an area prone to natural disasters.

While all businesses may not be required to carry business insurance, you are putting yourself and business at risk if you don’t carry it. Should a customer slip and fall and sustain and injury while on your property you could be held financially responsible. If your business location or inventory is destroyed, vandalized or stolen, your losses will not be insured. If you are sued due to the actions of an employee, you may be held responsible.

Most business owners have worked long and diligently to start and build their businesses. It deserves to be protected. Business owners’ insurance can help you do that. It may be more affordable than you think. Contact one of our independent business insurance agents to discuss your business and your risks. As an independent agent, they have relationships with multiple insurance companies from whom they can request a quote. You decide on the policy best suited for you and your budget. Contact us today to get the protection you deserve.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about our blog writer?

Read more about KayLynn's background.

Click Here

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Five Recent Fads That Came and Went Quickly

Wow! What Was That? Oh, It Was the Latest Fad.

Are You Legally Required to Carry Business Insurance?

What Type of Business Insurance May Your Business Be Required to Carry?

Four Needs Life Insurance Can Help Fulfill

Life Insurance May Be More Versatile Than You Think

Car Insurance FAQ’s

The Questions We Hear Most Often Regarding Automobile Insurance

Five Quick & Easy Ways to Save on Homeowners Insurance

Saving Money on Your Homeowners’ Insurance May Be Easier Than You Think!

America’s Most Popular New Year’s Resolutions

This is the Time of Year to Resolve to Make Things Better.

Business Insurance for Professionals

A Must Read for Attorneys, Financial Planners, Accountants and Medical Professionals

Term Insurance: Big Protection at Affordable Rates

If You Are Entering a High Responsibility Portion of Life, Term Insurance May be the Answer

Seven Steps to Become a Better Driver Tomorrow

Yes, We Are All Good Drivers. Or Perhaps Not.

Are You Required to Carry Homeowners’ Insurance?

There Are Situations Where You May Have to Have Homeowners Insurance

Leave a Comment