Who Requires Me to Have Commercial Insurance?

Business owners today have to make a lot of different crucial decisions. One important decision that they have to make is the decision to get the right type of commercial insurance. There are a variety of different regulators and entities that will require a business owner to obtain commercial insurance.

State Regulators

For those that are in the Sandy, UT area, state regulators will require that you carry some form of commercial insurance. All business owners today are required to carry workers compensation insurance if they have more than one employees. This will provide insurance protection if someone is injured during the course of the workday. Those that are sole proprietors will not be required to carry workers compensation coverage. 


If you take out a loan to finance any part of your business, having adequate commercial insurance will likely be a requirement. Commercial lenders will normally require that you have liability insurance protection. This type of protection will provide you with coverage in the event you are deemed to be liable for a wide variety of accidents. Even if it is not required by a lender, the valuable protection it provides could be worthwhile.

Landlord or Mortgage Holder

Almost all businesses today also need to carry property insurance. If you own your place of business, it will be required under your commercial mortgage. If you are a lessor, you may be required to carry a full property insurance policy in your lease.

For Sandy, UT business owners, discussing their commercial insurance needs with The Smith Insurance Group, Inc. would be a great first step to getting the right type of policy. The Smith Insurance Group, Inc. will be able to explain all of your commercial insurance options to make sure you know what type of coverage to get. Reach out to our agents for more information on commercial insurance.