Today more than ever before, people are deciding to forgo the security of a 40-hour work week at large, established companies for the flexibility and opportunities provided by starting their own business. Today we’re taking a look at three of the most common and frequent scenarios that trigger a legal requirement for some form of commercial business insurance in Boardman.
A generational shift is occurring where modern entrepreneurs are learning they can have more control over their future and wealth by starting their own companies. However, if you have never run a business before, you may not be aware of all the things you’ll need to take care of in order to comply with the law.
Obtaining the proper commercial business insurance in Boardman is one of those things. Yes, buying business insurance, for the most part, is a practical but optional choice, but which scenarios legally require a business to have coverage in place?
Hiring Employees and Contractors: The first, and most common, the scenario that will generate a mandatory insurance requirement is the hiring of employees or independent contractors. Employee safety should always be top of mind so ensuring that your employees can recover quickly after a workplace accident or illness is imperative.
That is why every state legally requires all companies with a certain number of employees or contractors to maintain workers compensation insurance coverage. The number of employees or contractors that triggers this requirement varies by state.
It’s important to understand that employers are always responsible for all medical costs associated with an employee injury or illness that occurs while the employee is performing their job duties.
Company Owned or Leased Vehicles: Another common situation that triggers a legal requirement for commercial business insurance in Boardman is when there are any company-owned vehicles. Just like for personal auto insurance, business is legally required to hold automobile liability insurance for any vehicles owned or leased by the company.
Data Breaches: It seems like every day we are hearing about another hacking-related data breach that compromises some amount of private information from a company’s customers.
It can range from confidential corporate information like trade-secrets to personally identifiable information like credit card information or health records. These data breaches cause such a significant amount of damage to everyone involved that regulators have begun to enforce cyber liability and data security requirements in your commercial business insurance in Boardman.
Today, the executives of companies experiencing data breaches are being held personally legally responsible for the data their companies retain and failing to properly protect that data can result in hefty fines and, in some cases, even jail time for owners and executives. So, you have to be protected!
Keep in mind, these are just a few of the most common types of insurance and the scenarios that legally mandate them. There are a host of other policies that can be legally required through customer contracts or lease agreements.
It’s best to periodically review the insurance requirement clauses in your company’s policies to ensure you aren’t underinsured. So if you’re thinking about starting your own company or if you’ve already taken the leap and are nearing one of these milestones, keep us in mind. If you need help obtaining the right commercial business insurance in Boardman, call us today!