Business insurance can offer you protection and help keep your business and personal finances secure. As a business owner, it’s your responsibility to secure the necessary business insurance to protect your assets, property and employees. If you’re not protected with the right insurance, an accident, pandemic, natural disaster or lawsuit could result in expenses that you can’t afford and force you to close your business.
Insurance required by law
There are a few types of business insurance that may be required by law, depending on where your business is located, to help protect your company and employees from the financial burden of unexpected events. The requirements differ from country to country, so visit your government websites to find out the coverage required in your area. Also, be sure to thoroughly research all types of insurance associated with your industry and in your country to stay compliant.
Here are a few types of insurance required in many countries and regions:
Workers’ compensation insurance
Workers’ compensation is required by law and provides coverage for medical expenses, lost wages and rehabilitation costs to employees who are injured or become ill at work. Each country has a different workers’ compensation system and requirements, so be sure to visit your region or country’s worker's compensation department website.
Unemployment insurance provides temporary financial assistance to workers who have lost employment through no fault of their own, such as being laid off or quitting due to unsafe working conditions. Regions or countries generally require employers to pay unemployment insurance for each employee. The amount you’ll pay can depend on how many employees you have, how much you pay them and whether previous employees have claimed unemployment benefits.
Disability insurance covers part of an employee’s income in the event they lose their ability to work after a non-work-related illness or injury. Disability insurance is required for employers in some regions, so make sure to research the requirements where you run your business.