Business Xpress Startup Toolkit Step 4 - Insurance & Bond

State of Oregon Corporation Division

7 Aug 201802:07

Summary

TLDRThis video from the Oregon Secretary of State Corporation Division guides new business owners through the steps of starting a business in Oregon, focusing on the importance of insurance and bonds. While Oregon doesn't mandate insurance or bonds for all businesses, certain industries require them for licensing or contracts. For example, construction contractors and doctors may need specific insurances. Prospective employers or agencies may impose these requirements. Use the Business Xpress License Directory to check if your business needs insurance or bonds. Even if not required, liability insurance is recommended for protection. Consult an attorney if unsure.

Takeaways

🏢 The video series is a guide for starting a business in Oregon, supplementing the Business Xpress Startup Toolkit.
🛡️ Step 4 of starting a business is ensuring proper insurance or bonds are in place to protect the business.
📋 Oregon does not require insurance or bonds for the mere existence of a business, but some industries may have specific requirements.
👷‍♂️ Construction contractors in Oregon are an example of a trade that must carry insurance and bonds to be licensed.
🏥 Prospective employers or contractors, like hospitals, may require insurance or bonds as a condition of employment or contract.
👩‍⚕️ Doctors are not mandated by state law to carry malpractice insurance, but hospitals often require it for employment.
🔍 Regulatory agencies may require bonds based on a business's activity and history, which typically does not apply at the business's start.
🔑 The Business Xpress License Directory can be used to search for insurance or bond requirements related to one's business.
📝 If there is an insurance or bond requirement, it should be displayed in the search results from the License Directory.
💡 Carrying liability insurance is recommended even if not required, providing an extra layer of protection for the business.
⚖️ Consulting an attorney is advised if there is uncertainty about the need for insurance.

Q & A

What is the purpose of the Start a Business video series by the Oregon Secretary of State Corporation Division?
-The video series is designed to help those starting a business in Oregon understand the steps involved and supplements the Business Xpress Startup Toolkit found online.
What is the fourth step in starting a business according to the video series?
-The fourth step is to make sure you have insurance or bonds set up to protect your business.
Does the state of Oregon require all businesses to carry insurance or bonds?
-No, Oregon does not require a business to carry insurance or bonds based merely on the fact that a business exists.
In which cases might a business be required to carry insurance or bonds?
-Some businesses may be required to carry insurance or bonds because they are part of a particular industry or trade that is regulated by agencies.
Why are new construction contractors in Oregon required to carry insurance and bonds?
-They are required to carry insurance and bonds in order to be licensed by the Construction Contractors Board.
Can a hospital require a doctor to carry malpractice insurance even if it's not a state requirement?
-Yes, a hospital would normally require malpractice insurance before hiring the doctor as an employee or as a subcontracted business.
What might prompt a regulatory agency to require a bond from a business?
-A regulatory agency might require a bond based on the activity and history of the business.
When do the bond requirements generally apply to a business?
-These requirements generally won't apply at the onset of a business operating, and a business would be notified by an agency if such a bond is required.
How can a business owner determine if their business is required to have an insurance or bond?
-They can use the Business Xpress License Directory to search for keywords relating to their business to find out if there is an insurance or bond requirement.
Is it always necessary to carry liability insurance for a business?
-While it isn't always required, it's a good idea to carry liability insurance for protection.
What should a business owner do if they are unsure about their insurance needs?
-They should consult their attorney for advice on whether they need insurance.

Outlines

00:00

🛡️ Insurance and Bonds for Business Protection

This paragraph outlines the importance of insurance and bonds for businesses in Oregon. While the state does not mandate insurance or bonds for the mere existence of a business, certain industries are regulated and may require them. For instance, construction contractors need insurance and bonds to obtain a license. Similarly, certain employers or contractors may demand insurance as a condition of employment or contract. Although not required by state law, doctors often need malpractice insurance to be hired by hospitals. Regulatory agencies might also require bonds based on a business's activities and history, but this typically applies post-establishment. Businesses can use the Business Xpress License Directory to check for insurance or bond requirements related to their industry. The video emphasizes the value of liability insurance even when not mandatory and suggests consulting an attorney for insurance-related uncertainties.

Mindmap

Keywords

💡Insurance

Insurance is a contract where one party, the insurer, agrees to compensate another, the insured, for a certain loss, damage, or injury in exchange for a premium payment. In the context of the video, insurance is crucial for businesses to protect against potential liabilities and financial losses. For instance, the script mentions that new construction contractors in Oregon are required to carry insurance to be licensed.

💡Bonds

Bonds are a type of financial guarantee or assurance that a business will fulfill its obligations. They are often required in industries where there is a significant risk of default. The video explains that while Oregon does not require bonds for the mere existence of a business, certain regulated industries may necessitate them, and businesses are notified by regulatory agencies if this is the case.

💡Business Xpress Startup Toolkit

The Business Xpress Startup Toolkit is an online resource designed to assist entrepreneurs in the process of starting a business in Oregon. It supplements the information provided in the video series, offering a comprehensive guide to the steps and requirements for business formation, including the insurance and bonding requirements discussed in the script.

💡Construction Contractors Board

The Construction Contractors Board is a regulatory agency in Oregon that oversees the licensing of construction contractors. The script highlights that this board requires contractors to carry both insurance and bonds as a condition for obtaining a license, emphasizing the importance of compliance with industry-specific regulations.

💡Liability Insurance

Liability insurance protects businesses from financial loss if they are found liable for injuries or damages to others. Although not always required by state law, as the video points out, it is highly advisable for businesses to carry liability insurance to safeguard against potential legal and financial repercussions, as exemplified by the case of doctors and malpractice insurance.

💡Regulatory Agencies

Regulatory agencies are government bodies responsible for overseeing specific industries or sectors to ensure compliance with laws and regulations. The video mentions that these agencies may require insurance and bonds based on the nature of the business and its history, indicating the importance of staying informed about industry-specific requirements.

💡Business License

A business license is a legal permission to operate a business within a certain jurisdiction. The video script implies that obtaining certain types of business licenses, such as those for construction contractors, may require proof of insurance and bonds, thus linking licensing to the broader topic of business protection.

💡Malpractice Insurance

Malpractice insurance is a form of professional liability insurance that protects healthcare providers against claims of negligence or malpractice. The script uses malpractice insurance as an example to illustrate that even though state law may not require it, hospitals often demand it as a condition for hiring doctors, showing the practical necessity of such insurance in certain professions.

💡Employment

Employment refers to the relationship between a worker and an employer, where work is paid for by wages, salary, or other forms of compensation. The video script notes that prospective employers, such as hospitals, may require insurance as a condition of employment, highlighting the connection between employment contracts and insurance requirements.

💡Contract Award

A contract award is the process by which a contract is given to a successful bidder or contractor. The script mentions that contractors may require insurance or bonds as a condition for receiving a contract award, demonstrating the linkage between securing business opportunities and meeting insurance and bonding prerequisites.

💡Business Xpress License Directory

The Business Xpress License Directory is a tool provided by the Oregon Secretary of State Corporation Division to help businesses identify any insurance or bond requirements for their specific industry. The video encourages viewers to use this directory to search for keywords related to their business to determine if they need to obtain insurance or bonds, thus facilitating compliance with industry regulations.

Highlights

Introduction to the Start a Business video series by the Oregon Secretary of State Corporation Division.

The series helps new businesses in Oregon understand the steps involved in starting a business.

This video series supplements the Business Xpress Startup Toolkit found online.

Step 4 in starting a business is ensuring you have insurance or bonds to protect your business.

Some businesses are required to carry insurance or bonds based on their industry or trade.

Oregon does not mandate insurance or bonds for businesses based solely on their existence.

Certain industries regulated by agencies may require insurance and bonds.

New construction contractors in Oregon must carry insurance and bonds to be licensed by the Construction Contractors Board.

Prospective employers or contractors may require insurance or bonds as a condition of employment or contract award.

Doctors are not required by state law to carry malpractice insurance, but hospitals usually require it.

Regulatory agencies may require a bond based on the business's activities and history.

Such bond requirements generally don't apply at the start of a business.

Businesses will be notified by an agency if a bond is required.

Use the Business Xpress License Directory to check if your business requires insurance or a bond.

Carrying liability insurance is recommended even if it's not required.

Consult your attorney if you're unsure whether you need insurance.

The video encourages viewers to watch other Start a Business videos for more information.