BUSINESS INSURANCE

Is a business required to have certain types of insurance?

All businesses must provide Workers' Compensation coverage for the benefit of their employees who may be injured while on the job. This is a requirement of the law in every state. For most businesses, this requirement is satisfied by purchasing Workers' Compensation insurance, which is available from private insurance companies in most states. In a few states this coverage must be purchased from an agency of the state government. 

Often there will be contractual requirements for businesses to have certain types of insurance. For example, the terms of a lease Often there will be contractual requirements for businesses to have certain types of insurance. For example, the terms of a lease for an office or store or factory usually will require the tenant to have certain types of insurance to cover its operations conducted on the leased premises. If a business borrows money, the loan documents often will require that a specified amount of insurance must be maintained to cover the business's property and liability exposures. Leases for office equipment may require insurance to cover potential damage to the equipment. All contracts and leases entered into by a business should be carefully reviewed for insurance requirements. Failure to maintain the required insurance could be a basis for termination of the contract or lease.