State governments normally determine the primary insurance requirements for businesses. That said, if you run a business, there are insurance requirements that will be specific to your situation, although all businesses are typically required to have certain types of insurance. Here’s a closer look at the state-based insurance requirements that apply to businesses as well as other options for seguro de negocios en San Diego Las empresas deben tener en cuenta.
Businesses with Employees—What’s Required
Most states require any business with employees to obtain certain types of insurance. The list of insurance that’s typically required for businesses includes:
• Workers’ compensation insurance – Workers’ comp insurance supplements wages for employees who are injured on the job.
• Unemployment insurance – Administered by the state and based on federal guidelines, unemployment insurance provides cash benefits for people who become unemployed through no fault of their own.
• State disability insurance – This type of insurance provides partial payments to employees who are unable to work at all or who can’t work their normal schedules due to non-work-related disabilities or illnesses.*
*Required in California, Hawaii, New Jersey, New York, Puerto Rico, and Rhode Island.
Depending on the nature of your business, your state may also require insurance specific to certain business-related activities. For instance, if you own and operate commercial trucks as part of your business, any state requirements for commercial vehicle insurance would apply. Find out for sure what’s required for your business by contacting your state’s Department of Insurance.
Failure to Obtain Necessary Coverage
If you have plans to start a new business, failure to obtain the types of insurance required by the state could result in hefty fines. You may also be unable to obtain a state license to operate your business. And if you have an existing business but you don’t have the required coverage, you may lose your license and/or be penalized with fines.
Also, know you’ll have to obtain the state-required insurance coverage in other states if you expand your business operations beyond one state. For example, if you already have the required coverage in California, you’ll have to obtain what’s required in Nevada if you have plans to operate in that state as well.
State Insurance Coverage—What’s Recommended
There are other types of insurance you can obtain for your business that aren’t specifically required. However, this is coverage that’s often recommended to reduce your risk of being seriously impacted financially. The list of coverage that’s not usually required but still highly recommended includes:
• General liability insurance
• Commercial property coverage
• Commercial auto insurance
• Data breach/cyber liability coverage
• Directors/officers insurance
Making Business Insurance Convenient & Affordable
It’s not always easy to make sure you’ve crossed all insurance-related requirements off your to-do list, especially if you’re just starting your business and busy with other tasks. Fortunately, an insurance agent who’s experienced in business insurance can give you a rundown of what you need and what to consider. As for saving money on insurance for your business, a business owner’s policy is one way to obtain multiple types of coverage in a convenient way.
Operating a business means assuming certain kinds of risk, and the type of insurance you need will vary according to the size of your company and the nature of your operation. If you need affordable, reliable insurance for your business, turn to Altra Insurance. Give us a call today at (800) 719-9972 today to talk to one of our friendly representatives.