Once you decide to start a business, you have to think about the types
of insurance you are legally required to have for your new company.
business with employees is required by law to carry various types of insurance,
such as workers’ compensation, disability, and unemployment depending
on the location of the business.
As soon as you begin to hire employees, which may be as soon as you get
your business off the ground, you will have to comply with the state’s
workers’ compensation requirements.
You will have to obtain your workers’ compensation coverage through
a state workers’ compensation program, on a self-insured basis,
or through a commercial carrier. To learn more about the workers’
compensation laws, you can check out the state’s
Workers’ Compensation Office.
Unemployment Insurance Tax
In the United States, when a business has employees it is required to pay
unemployment insurance taxes, however, certain conditions apply. Do you
know if your business is required to pay unemployment insurance taxes?
If it is, you can register your company with Illinois’ state workforce agency.
Does Illinois require employers to provide partial wage replacement insurance
for eligible employees who suffer from a non-work related injury or illness?
does not require employers to purchase disability insurance, however, it is required
in: California, Hawaii, New Jersey, New York, Puerto Rico, and Rhode Island.
Types of Business Insurance Available
If you are about to start a business, you want to learn about the various
types of insurance available to help minimize any conceivable risk that
your business could face in the future.
You should discuss the types of risks that your particular business could
face with an attorney from our firm. We can help advise you on the exact
types of insurance that could help protect your business.
Common types of insurance available to businesses:
- General liability insurance
- Product liability insurance
- Professional liability insurance
- Commercial property insurance
- Home-based business insurance
Another consideration is health insurance for your employees. If you need
information regarding shopping out health insurance for a small business,
we recommend reading
Health Insurance for Small Employers, provided by the Illinois Department of Insurance.
For all other insurance questions, we suggest that you
contact Rifkind Patrick LLC for a wealth of guidance about the insurance requirements
for your business.