Indiana Insurance Laws: What You Need to Know for Your Business
Indiana is one of the best states in which to begin a small business — in fact, it ranks fifth in the nation and is proud to be considered the home base for a whopping eight Fortune 500 companies. And for 500,000 other small businesses, Indiana provides a rich and growing small business environment, with a wide range of resources designed to help businesses thrive.
But if you’re a small business owner, you’re probably overwhelmed with the amount of work it takes to handle all the details of starting and managing a business. There are the financial matters to consider, operational and logistics issues, and other legalities that can make creating a business a confusing task. But ignoring these issues can be a big mistake, as small businesses are more vulnerable to lawsuits and bankruptcies, especially without adequate insurance protection.
For this reason, understanding the importance of getting the right business insurance for your small business is a critical step in creating a strategy to protect your business from harm — and set you on the road to a successful, sustainable venture.
5 Kinds of Insurance Every Indiana Business Needs
There are five types of insurance products that are essential for every small business in Indiana, several of which are mandatory.
Auto Insurance: MANDATORY
If you — or your employees — use vehicles for business purposes, you should consider purchasing a commercial vehicle policy. Indiana law requires that all drivers carry minimum liability coverage:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $25,000 per accident for property damage
However, you may wish to increase these coverages and even add coverage to protect your business assets even further in the event of a lawsuit.
Worker’s Compensation Insurance: MANDATORY
If your business employs one or more people in the state of Indiana, you are required to carry a worker’s compensation insurance policy. If any employee sustains an on-the-job injury, this policy will assist your business in covering both the legal and medical costs associated with the accident.
Health Insurance: MANDATORY for More Than 50 Employees
If your business employs more than 50 employees, then you must provide a health insurance option that has adequate coverage and meets the criteria outlined in the Affordable Care Act (ACA). However, if you have fewer than 50 employees, you are not required to provide health insurance benefits, although you may want to explore your options. Offering health care benefits may help your small business attract higher level talent and assist with employee satisfaction and retention as well.
Professional Liability Insurance
As we mentioned, small businesses are often the target of lawsuits, in part due to their inability to defend themselves due to small budgets and lack of in-house legal counsel. For this reason, it is wise to consider the purchase of a professional liability insurance policy. Such a policy can protect your business from claims of negligence or malpractice in the event you, or an employee, makes an omission or error.
Products Liability Insurance
Again, many malicious actors prey upon small businesses, looking for ways to get an easy payout through legal proceedings. Product liability policies protect you from lawsuits that arise as the result of personal injuries sustained from a product that your company either manufactured, sold, or distributed.
It is important to note that some insurance companies sell policies with combined benefits called Commercial Liability Insurance policies. They can also be known as Business Liability Insurance or Commercial General Liability Insurance policies. In general, these blanket policies can help protect your business from damages arising from bodily injuries, personal injuries, property damage, advertising injuries, as well as helping to defend against judgements and providing for legal defense. You can talk to your insurance representative if you wish to explore one of these products for your business.
Let Us Help Your Small Business Thrive!
Starting a small business can be a stressful and time-consuming process, especially when you are dealing with complex legal matters. Having the right insurance in place not only ensures your compliance with applicable Indiana business laws, but also protects your investments by offering outstanding protection against the typical legalities faced by today’s small businesses.
At M.J. Schuetz Insurance, we have a team of experienced business insurance experts on hand to help you shield your business against damage and harm and give you the protection and peace of mind you need to focus on what you do best — running a successful operation. Contact us today to learn how we can help you choose the right policies for your business needs and budget — and keep you protected as your business grows!
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