Business Insurance

Insurance Considerations for Small Business

There are two fundamental types of insurance a small business should consider: commercial insurance and employer insurance.  Commercial insurance is not typically required by law and provides protection against events such as natural disasters and lawsuits.  There are some business activities which are required to be covered by insurance such as operation of a motor vehicle for business purposes.  Some common business insurance policies include: general liability, product liability, professional liability, commercial property and home-based business insurance. Employer insurance is required by law for entities with at least one employee. Required employer insurance policies (for most employers) in Nevada include: Workers' Compensation Insurance and Unemployment Tax Insurance.

 In addition, employers may elect to offer health insurance and related benefits to employees. The Patient Protection and Affordable Care Act and related legislation requires employers with 50 or more full-time employees (or a combination of full-time and part-time employees that is equivalent to 50 full-time employees) to offer adequate health coverage or be subject to assessment if their employees receive premium tax credits to buy their own insurance. This mandate is in effect beginning in 2014. Conversely, beginning in 2010, small businesses with fewer than 25 employees may be eligible for a tax credit for purchasing health insurance for their employees.