New York (NY) Business Insurance

New York (NY) Business Insurance Requirements

NY State Insurance Requirements

Legal requirements:
In New York State, if you have any employees, you are required to carry workers' compensation and disability benefits insurance. If you own a car or truck for business you need auto insurance. Often a landlord will require you to maintain a certain level of liability coverage as a condition of your lease. Your bank or your investors might require you to maintain life, business interruption, fire or other types of insurance to protect their investments.

The benefits of coverage:
Insurance isn't just protection against disaster. It has positive benefits and advantages few business owners realize. Employee programs such as health benefits can help you retain good employees. Borrowing against equity in your life insurance or retirement fund is one way to raise capital for expansion. It can also improve your bank and supplier credit. In addition, you can insure against your loss of business income as well as your goods in a fire or other incident.

What business insurance am I required to get in New York?

New York workers’ compensation insurance

The state of New York requires employers to have
workers’ compensation coverage
for all their employees. Workers’ compensation insurance exists to safeguard employees from financial impact related to injuries or illnesses sustained on the job. As a business owner, it also protects you from liability related to employee injuries. Workers’ compensation covers expenses and lost wages caused by the following:

Work-related accidents and injuries, such as repetitive stress injury, and resulting disability Illnesses caused by or related to employment

New York auto liability insurance

If you drive a car, truck or van as part of your business operation, you’re required to have auto liability insurance or qualify as a self-insurer. Auto liability insurance can protect you and your business from the following types of third-party claims resulting from auto accidents involving your vehicle:

Property damage
– If you get into an accident in which you are at fault, your auto policy’s Property Damage Liability coverage insures the cost to repair or replace the other party’s vehicle.

Bodily injury
– If you get into an accident in which you are at fault and the driver or a passenger of the other vehicle is injured, your auto liability insurance will cover the additional costs arising out of bodily injury, including medical expenses and death benefits once the injured party has exceeded all PIP benefits available under their policy. In addition to standard bodily injury liability coverage, New York also requires you to have
uninsured motorist bodily injury
coverage.

In New York, your auto liability insurance also provides coverage for:

Personal injury protection (PIP)
– Personal Injury Protection covers 80 percent of all necessary and reasonable medical expenses up to $50,000 resulting from a covered injury, no matter who caused the crash.

Also, depending on the use of your vehicle, the kind of vehicle or if your vehicle is registered or titled under your business name, you may need a commercial auto insurance policy to secure the appropriate coverage and vehicle registration, and avoid penalties.

What other types of business insurance are recommended for New York?

New York general liability insurance

General liability insurance
(also known as CGL—for commercial general liability) is one of the most essential and effective ways to safeguard your business. It protects your business from the financial consequences resulting from liability related to third-party non-employee bodily injury or third party property damage that arises from your business operations. It also provides coverage for personal and advertising injury. Without general liability insurance coverage, you could be in financial trouble in the event of an unfortunate accident involving a customer or other third party.

New York professional liability insurance

If you provide professional services and your advice is alleged to have led to one of your clients suffering a financial loss,
professional liability insurance
can help. When a former customer or client claims—rightly or wrongly—that a mistake in your work led them to suffer a financial loss, professional liability insurance provides you with investigation and defense of the claim as well as making payments of any settlements or judgments.

Inland marine insurance

Inland marine insurance
is designed to protect that vital equipment you use to make your business run smoothly. It protects your business by covering costs associated with accidentally damaged, lost or stolen equipment that is on the go with you. Whether you have an expensive tool collection, pricey construction materials, or other equipment you transport to a job site, having inland marine insurance is a no-brainer.

Commercial property insurance

Commercial property insurance
protects your company’s building and the contents inside it from all kinds of risks of physical loss or damage, including theft, vandalism and fires. Commercial property insurance is often included as part of a
Business Owners Insurance Policy or BOP.

Sources:

1. American Enterprise Institute. Putting America’s enormous $19.4T economy into perspective by comparing US state GDPs to entire countries.
2. U.S. Small Business Administration Office of Advocacy. New York Small Business Economic Profile.