Explain The Three Key Legal Insurance Requirements

According to the Small Business Administration (SBA), businesses with employees are required to maintain certain types of insurance. Each state may have different requirements, so it is important to speak with your attorney or tax advisor to determine what is necessary for your business. Let’s take a look at the three key legal insurance requirements:

• Workers’ Compensation Insurance. All states require workers’ compensation insurance regardless of what type of business you have. Some states will require a certain amount based on the number of employees, while others may require it whether or not you hire any employees.
• Disability Insurance. Disability insurance covers incidents or illnesses that are not related to work that prevent an