Georgia business insurance requirements

March 20, 2020

If you’re a business owner in Georgia, you need to have insurance to protect your company from various risks. Short-term business is on the rise all across Georgia, especially given the boom in film production brought to the state in the last few years! But even if you operate in a low-risk industry, you’re still legally required by the Peach State to have certain types of insurance policies. But even these fail to cover the gamut of potential liabilities your business will probably face on any given day.

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

Do you need general liability and professional liability insurance? Thimble offers on-demand, affordable, and flexible business insurance. With our pay-when-you-work structure, your insurance only works when you do. That’s why we’re so affordable.

Choose your desired coverage length by the hour, day, or month, and only pay for insurance while you’re working. Add Additional Insureds free of charge and get unlimited COIs to send to your clients. It’s never been simpler than Thimble. Just click “Get a quote” or download the mobile app to get started and protect your business in Georgia.

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.

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