Georgia business insurance requirements
- March 20, 2020
You want to be shielded from liability, right? Want to abide by the law? If so, read on as we review both the mandated types of business insurance as well as the policies that you should have in place to protect your business.
Liability insurance laws in Georgia
Similar to the rest of the country, Georgia state has conditional laws that require employers of a business to have both a workers’ compensation policy as well as a commercial auto insurance policy. We’ll review the stated conditions, so you know whether or not you’re in compliance with Georgian laws.
Workers’ Compensation
Every state in the Union (besides Texas) mandates that a company with a certain number of workers is required to carry workers’ compensation as part of the business insurance policy. In Georgia, if you have three or more people who you employ regularly—whether part-time or full-time—you must purchase a workers’ comp package for liability coverage.
This policy protects the business and its employees in the event of a workplace injury. It blocks your employees from filing any potential negligence claims and covers all of the following costs resulting from the personal injury, like:
- Medical expenses
- Treatment
- Rehabilitation
- Lost wages caused by injury or illness
- Permanent disability
Commercial Auto Insurance Policy
Do you own a vehicle that you use for work purposes? If so, Georgia has a financial responsibility law that orders you to have insurance coverage for any motor vehicle you own or operate in connection to the business. Practices includes:
- Driving to and from work
- Using the vehicle to transport clients or employees
- Carting around equipment, products, etc.
This type of policy protects the business, the driver of the vehicle, and the damaged third party. In the case of an accident. It would cover:
- Bodily injury
- Property damage
- Medical bills
- Vehicle theft or damages
- Legal fees
Georgia business insurance requires that employers obtain a policy that satisfies the following policy limit coverages:
- $25,000 for damage to property of others per accident
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
Also, it’s worth mentioning that if you or your employees use your personal vehicles for work purposes, your personal auto policy likely won’t cover you for a work-related mishap. Therefore, it’s wise to purchase a hired and non-owned auto insurance policy, which would protect your personal vehicle in such circumstances
Recommended liability insurance
Despite the fact that there are only two legally required policies for businesses in Georgia, there are several other policies the smartest small business owners also consider:
Commercial Property Insurance
If you rent a building and conduct work from there, you’ll want to purchase property insurance. And if you own the building, it’s an absolute must. Whether you have an office or a warehouse, this form of commercial property insurance protects both the building and the things it contains, such as inventory and equipment. In most cases, it covers the following circumstances:
- Theft
- Vandalism
- Smoke damage
- Fires
- Employee actions that damage equipment or the building itself
Commercial Flood Insurance
Floods, tornados, landslides, and other larger acts of God won’t be covered by an insurance company unless you specifically request such a policy. But in Georgia, it’d be smart to have commercial flood insurance. This would help cover the costs and damages caused by a flood to:
- Documents
- Assets
- Equipment
- Furniture
- Inventory
- Electronic devices
- The structural aspects of the building
Whether a heavy rain causes flooding or a flash flood wipes out a building, you’d be protected.
General Liability Insurance
Every single business, big or small, needs a general liability insurance policy. It shields you from the potential liability claims and allegations that might occur to third parties along the line of duty. A general liability helps cover the following:
- Bodily injury
- Medical expenses
- Property damage
- Reputational harm
Also, it could help pay for the legal fees if a suit goes to court.
Professional Liability Insurance
Professional liability insurance, sometimes referred to as errors and omissions (E&O) insurance, covers damages and defense costs in the event that you are held liable for bad advice or negligence (in relation to professional service or consultation).
In a litigious world, practically anyone can sue your business so long as they feel wronged by you. They can claim that they suffered financial hardship because of something you did or said. Whether or not there’s merit to their liability claim, an E&O policy would cover:
- Negligence — Safeguards you from paying for alleged or actual errors and omissions.
- Defense costs – Pays for the legal defense team when a claim is alleged.
Cyber Liability Insurance
The threat of cyber attacks has never been higher. Analysts estimate that by 2021, they will have caused more than $6 trillion worth of damages in just the last two decades alone. And for your business, even one cyber intrusion, hack, or data breach could be a serious problem. But, if you had a cyber liability insurance policy, you could be protected from the following:
- Legal fees and expenses
- Ransomware payments
- Restoring personal identities of impacted customers
- Recovering compromised data
- Monitoring and alerting clients of fraud
- Repairing damaged computer systems
- Paying judgments and settlements
- Hiring a PR team
- Lost revenue arising from business interruptions
Thimble: business insurance in Georgia
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Our editorial content is intended for informational purposes only and is not written by a licensed insurance agent. Terms and conditions for rate and coverage may vary by class of business and state.
