Insurance rules for businesses
UK employers need £5m of employers' liability cover. A one-director company is exempt only if its single employee owns 50%+ of the shares; two directors are not.
Most states set $1M for a public fireworks show, but Texas requires $500,000 outdoors and Georgia accepts a $10,000 bond. Ten state statutes compared.
Louisiana and Illinois make repo agencies carry $1M policies plus a $1M bond; Florida licenses them with no insurance at all. Eight states checked at statute.
New York requires MMA and boxing promoters to insure each fighter for $1,000,000 in brain injury care; Florida requires $20,000 in medical coverage.
Colorado requires outfitters to carry $100,000 per accident plus a $10,000 bond; Oregon requires $500,000, and Montana defers to federal land permits.
Four states legally require $1,000,000+ liability insurance for bounce house rentals; Florida and Colorado exempt inflatables from that same law.
Washington requires $500,000 in liability insurance for a fireworks stand; Michigan requires $10,000,000 per location for the identical activity.
Most states don't license doulas at all, but 26 states plus D.C. now require $1M/$3M liability insurance to enroll as a Medicaid-reimbursed doula provider.
Illinois, Kentucky, Oregon, and Wisconsin ban bounty hunting outright. California requires $1 million in liability insurance plus a $1,000 bond per bail agent contracted.
Nevada requires $200,000 in liability insurance to serve legal papers; California requires a $2,000 bond; Texas requires neither — just certification. See what your state demands.
Cannabis dispensaries face no federal insurance mandate. Washington requires $1 million in general liability to license a store; California and Illinois use a bond instead, and Colorado storefronts need neither.
California requires a $1 million general liability policy to license a security guard agency; Florida requires only a $10,000 bond for unarmed agencies. See how licensing insurance and bonding minimums compare across 5 major states.
No state requires self-storage tenants to buy insurance — but states regulate how facilities sell it: Washington licenses it as a specialty line, and Minnesota requires the facility to file notice, train staff, and disclose that your own policy may already cover stored goods.
About half the states require a surety bond for a private investigator license, and a smaller group layers on liability insurance — Illinois requires $1 million. See which states require what, and why a bond and a policy protect different parties.
No single law requires summer camp insurance, but landowners, facility rental agreements and school or municipal partners commonly require general liability. Abuse and molestation cover is excluded and bought separately, and workers' comp follows the state threshold.
Personal chefs face foodborne-illness and allergic-reaction liability that a client's homeowner's policy never covers — most states require food handler certification, and $1M general liability is the standard client-contract minimum.
Auto detailers face the same care-custody-control gap as mechanics — paint and upholstery damage during detailing isn't covered by standard general liability without a garagekeepers endorsement.
Brand sponsorship contracts increasingly require $1M general liability before releasing payment, and standard homeowners and auto policies exclude monetized content creation as a business activity.
Standard general liability excludes animals in the facility's care under the CCC exclusion — making care, custody, and control bailee coverage the most critical insurance for boarding kennels and doggy daycares.
Laundromats need bailee's customer goods coverage for clothing damaged in machines — standard GL excludes care-custody-control claims. Equipment breakdown coverage is equally critical, as machine motor failure is not covered by commercial property policies.
Standard GL excludes liquor claims for any bar, and some states — Illinois, Iowa, Michigan, Minnesota and Utah among them — make liquor liability insurance a licence condition. See how dram shop law differs by state and where assault-and-battery gaps come from.
Driving schools need commercial auto insurance with state-mandated minimums for student driver vehicles — California requires $750,000 combined single limit; most states set $100,000–$300,000 per person. General liability and professional liability are also required.
Car wash businesses need garage keeper’s liability to cover customer vehicles on premises — standard GL excludes care-custody-control exposure. Minimum GL is $500,000–$1,000,000, with workers’ comp required for all employees.
Warehouses need commercial property, $1M general liability, workers' comp, and bailee's customers goods coverage for third-party inventory — standard GL and property policies exclude customer-owned goods in the warehouse's custody. Forklift operators carry above-average workers' comp rates.
Dog trainers need $1M general liability to cover bites, participant injuries, and property damage — plus professional liability for behavioral outcome claims and care-custody-control coverage for board-and-train programs. Homeowner's policies exclude business operations.
Day spas need $1M GL and professional liability for licensed service providers. Wet floors, wax burns, and chemical reactions require overlapping coverage.
Staffing agencies are typically the employer of record for placed workers, making workers' compensation their largest and most complex insurance obligation. Negligent placement claims — placing an unqualified worker who then harms a client's customer — are covered only by professional liability, which standard GL policies explicitly exclude.
Standard general liability excludes liquor liability and typically excludes product liability for consumed beverages — two of the most significant exposures in the brewing industry. Most state ABC boards require proof of insurance to issue a brewery or taproom license.
Auto dealers need a state surety bond ($10,000–$100,000 depending on state), garage liability instead of standard GL, dealers open lot for inventory, and garagekeepers for customer vehicles in service. Standard commercial GL explicitly excludes garage operations.
Dram shop laws make sellers liable; they do not require insurance. Only some states make liquor liability a licence condition — Illinois, Iowa, Michigan, Minnesota and Utah among them. And the standard GL liquor exclusion applies only to businesses in the alcohol trade.
Yoga studios need general liability and professional liability — standard GL excludes instruction-related injuries. Aerial yoga requires explicit policy confirmation, hot yoga heat illness claims require professional liability, and booth-style instructors need their own individual coverage.
Hair salons need general liability and professional liability — chemical burns from bleaching are the top professional claim, and standard GL explicitly excludes professional services. Booth renters are never covered by the salon owner's policy and need their own coverage.
No state law requires junk removal insurance, but commercial clients and property managers require $1M GL as a condition of vendor authorization. Commercial auto is legally required on business trucks, and EPA Section 608 applies when hauling appliances containing refrigerants.
No state law mandates insurance for retail stores, but commercial leases require $1M GL as a condition of occupancy. Slip-and-fall, product liability, and employee theft are the three most common retail claims.
Most commercial venues require $1M general liability before a florist can set foot on-site, and workers' comp is legally required in 49 states the moment the first employee is hired. Here's what coverage florists actually need.
Security companies are required by state licensing boards to carry $300K–$1M general liability and workers' comp before receiving an operating license. Armed guard operations require $2M–$5M and a firearms liability endorsement.
Dog walkers need $1M general liability plus care, custody and control coverage — standard GL excludes pets in your care. Platform coverage from Rover and Wag only applies to on-platform bookings.
Airbnb's AirCover provides $3M in protection but is not actual insurance and won't satisfy your mortgage lender. Most homeowners policies also exclude short-term rental activity, leaving hosts personally exposed.
Caterers need $1M general liability, liquor liability if serving alcohol, commercial auto for food transport, and workers' comp for staff. Most venues require a certificate of insurance before granting event access.
Dog groomers typically need $1M general liability plus care, custody and control coverage for pets in their care. Mobile groomers also need commercial auto — personal policies won't cover business use.
Interstate movers must carry at least $750,000 auto liability under FMCSA rules ($300,000 for a fleet of only small vehicles), plus cargo security. State rules for intrastate movers vary — and cargo insurance is required separately from auto liability.
Barbershops need general liability, professional liability for service claims, and workers' comp for employees. Total annual cost runs $2,600–$6,600 for a two-chair shop — and landlords require proof before you sign.
Auto repair shops need garage liability and garagekeepers coverage — not standard GL. Garagekeepers pays for customer vehicle damage in your care, which standard policies exclude. Here's what every shop owner needs.
Nail salons need general liability, professional liability, and workers' comp if they have employees. Booth renters are almost never covered by the salon owner's policy — they need their own.
Sole traders face different insurance requirements than corporations. Learn what coverage is legally required in the US, UK, and Australia, what clients demand, and how to protect personal assets.
Tattoo shops need general liability, professional liability, and often property coverage. Learn what insurance tattoo parlors require for licensing and protection.
HOAs need master policies covering common areas, liability, and D&O. Learn what coverage associations must carry, what individual owners need, and typical policy costs.
Gyms need general liability, professional liability, and workers' comp insurance. Learn what coverage fitness centers need, typical costs, and landlord requirements.
Event planners need general liability and E&O insurance for vendor contracts and client protection. Learn coverage requirements, typical costs, and event-specific policies.
Real estate agents need E&O and general liability insurance for licensing and brokerage contracts. Learn coverage requirements, typical costs, and state-by-state rules.
Wedding venues need general liability, property insurance, and liquor liability if serving alcohol. Learn coverage requirements, typical costs, and what couples expect.
California's architect license carries no E&O mandate. The law requires $1,000,000+ security only of architecture LLPs, and a report to the Board of any claim paid at $5,000 or more.
Most states don't require cleaning service insurance, but clients do. Learn what general liability, bonding, and workers' comp cleaning businesses need, plus typical costs.
General contractors require subcontractors to carry liability and workers' comp insurance. Learn what coverage you need, typical costs, and additional insured requirements.
Hotels need general liability, property insurance, and liquor liability if serving alcohol. Learn coverage requirements, typical costs, and lender/franchisor requirements.
Most states don't legally require LLC insurance, but you need it. Learn what general liability and professional liability LLCs should carry, state rules, and industry requirements.
Restaurants must carry workers' comp at their state's threshold and auto liability on owned vehicles; liquor liability is a licence condition in some states, and leases require general liability. See what is legal versus contractual, state by state.
Most states don't require consultant insurance, but clients do. Learn what E&O, general liability, and cyber coverage consultants need, costs by specialty, and contract requirements.
Food trucks need commercial auto, general liability, and often product liability insurance. Learn what coverage is required for permits, events, and daily operations.
Most bakeries are legally required to carry only workers' comp. Liability cover comes from leases and markets, and home bakers answer to cottage food caps: $250,000 in Florida, $75,000–$150,000 in California.
Texas requires $300,000 per occurrence of licensed daycares, but lets uninsured providers operate after telling parents. California homes can use parent affidavits instead of insurance.
Browse insurance requirement guides across other coverage areas
State minimum auto coverage rules
Rules for contractors & trades
Professional & general liability rules
Country-specific travel rules
Insurance for motorcycles, boats & more
Legal and regulatory insurance rules
Side-by-side insurance requirement comparisons
Insurance requirements for delivery & rideshare drivers
LLCs, small businesses, self-employed professionals, and startups — understand what insurance is required or recommended.
All guides are written by the Coverage Criteria editorial team and verified against official government and regulatory sources. We translate complex insurance rules into plain language so you know exactly what coverage is required — without needing a lawyer.
