In most states, businesses must purchase workers’ compensation insurance as soon as they hire their first employee. For example, if a coffee shop hires a barista. In some states, general contractors and subcontractors (like electricians, handyman, and painters) in the construction industry must carry this coverage even if they have no employees.
Additionally, most states mandate commercial auto insurance for businesses that own a vehicle. For example, if you own a truck for your flooring installation, EMS, tree service, or HVAC business, then you'll likely need to obtain a commercial auto insurance policy.
A nurse, computer repair technician, occupational therapist, security guard, or caregiver who travels to meet clients would also need coverage beyond their personal auto policy, which only covers your commute.
In states with high property values, you may need higher limits on commercial property insurance or a business owner’s policy (BOP) to cover potential damage. In areas where earthquakes, floods, or fires are likely, businesses may have difficulty getting insured or pay more for coverage.
