If 2025 is the year you’ve chosen to follow your dream of opening a small business, congratulations! It’s an exciting endeavor, for sure. Still, there are many details you’ll need to consider to set it up for success, including what kind of insurance you will need. With so many options available, it’s easy to feel overwhelmed.
To help you navigate the complexities of small business insurance in Ohio, we've answered seven of the most common questions we receive from people like you who are ready to take the next big step and make their dream a reality. Read on to make sure your business is properly covered.
1. Does Ohio require small business insurance?
In Ohio, small business owners are not required to have insurance by the state for general purposes. However, if you have employees, workers' compensation insurance is mandatory. Additionally, if you operate a business that uses vehicles, commercial auto insurance is also required by law. While general liability insurance isn’t required, it is highly recommended to protect your business from accidents, property damage, and lawsuits.
2. Can I legally run a small business without insurance?
Technically, yes, you can run a small business in Ohio without insurance but doing so can leave it exposed to risks. Without coverage, you would be financially responsible for damages, accidents, or legal issues that could arise. For example, if someone gets injured on your business property or if your equipment is damaged, you would have to pay for these costs out of pocket.
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3. What is the minimum insurance I need for my small business?
The minimum insurance required for your business depends on its size, industry, and whether you have employees. In Ohio, if you have employees, workers’ compensation is mandatory. Beyond that, your small business could benefit from General Liability Insurance, Commercial Property Insurance, and Business Interruption Insurance that protects your business if it is temporarily shut down due to a covered event (like a fire or natural disaster).
4. Should I get a business license in Ohio?
Yes, in Ohio, most businesses are required to obtain a business license. The specific requirements depend on your location and the type of business you're operating. Certain industries—such as food service, health care, and construction—require additional licenses or permits. You’ll need to register your business with the Ohio Secretary of State and check with your city for any additional requirements.
5. Do I need small business insurance for an LLC?
Yes, even if you operate as a Limited Liability Company (LLC), you still need business insurance. While forming an LLC protects your personal assets from business debts or liabilities, it does not protect your business from risks like property damage or lawsuits.
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6. What does small business insurance not cover?
While business insurance provides a wide range of protections, there are certain exclusions you should be aware of. Common items that are generally not covered by standard policies include:
Employee issues: Most policies don’t cover employment-related claims, such as discrimination, wrongful termination, or harassment.
Flooding and earthquakes: Standard commercial property insurance typically does not cover damages from floods or earthquakes. You’ll need to purchase additional policies or riders for this type of coverage.
Wear and tear: Damage caused by normal wear and tear to equipment or property is generally not covered. Maintenance is your responsibility.
7. How often should I review my business insurance?
We recommend reviewing your business insurance at least once a year to make sure it still aligns with your needs. As your business grows, your insurance needs may change.
Opening a small business in 2025 presents a world of opportunities, but it also comes with its share of risks. One of the best ways to protect yourself, your business, and your employees is by having the right insurance in place.
If you’re ready to get started with business insurance or need help tailoring a policy to your specific needs, the team at Roehr Insurance can help. We’ll guide you through the process and help you secure the coverage your business needs.
