Which types of insurance are required by law for all businesses?

When you own a business in Plano, TX, it is important to select business insurance that follows the regulations and laws of the state and federal governments. The coverage that is regarded by law may vary slightly between different types of businesses and industries, but certain plans are required for every business owner who has employees and risks.

Worker’s Compensation Coverage

In most cases, you will need to purchase worker’s compensation coverage if you have employees. Even as a small business with two or three workers, the risks of injuries must be handled and covered. Generally, you are required to purchase a policy if you have hired any other individuals to work in your company, even if the risk of injuries and illness are low.

Liability Insurance

Protecting your company, your employees and the public may require some liability protection. Any business that owns motor vehicles will need to purchase a commercial auto insurance plan that includes liability protection that complies with state insurance laws. Other forms of liability protection can vary slightly between companies based on the type of risks that your business may face.

Unemployment Insurance

Unemployment insurance is generally required for any business that has hired employees because there is always the risk that you will need to fire employees for any reason. The insurance protects your company and your workers from major financial strains when a particular individual is not providing adequate work or if you must fire employees due to financial challenges.

The types of insurance policies that are appropriate for your business may vary slightly, but most companies will need to purchase policies that are required by law. Contact us to speak to an agent about business insurance options and the coverage that you may need.