Business Xpress Startup Toolkit Step 4 - Insurance & Bond

Summary

This 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.