Who Needs Business Insurance in Oklahoma

Nearly every business in Oklahoma benefits from having some form of business insurance. While only workers’ compensation is universally mandated by state law, other coverages are often required by landlords, clients, or industry regulations. Business insurance is especially important for:

• Employers with one or more employees (workers’ comp required)

• Businesses that own, rent, or lease commercial property

• Companies operating vehicles for business purposes

• Professionals providing specialized services or advice

• Contractors, restaurants, and businesses seeking certain licenses or permits

Over 371,000 small businesses in Oklahoma employ more than half the state’s workforce, making insurance a critical part of risk management for most local enterprises.

Workers’ Comp: When It’s Required

Workers’ compensation insurance is the only business insurance required by Oklahoma state law. All employers with one or more employees-full-time or part-time-must carry workers’ comp to cover medical expenses and lost wages for work-related injuries or illnesses. There are a few narrow exemptions, such as certain family businesses with fewer than five family-member employees.

Failure to carry workers’ comp can result in significant financial penalties and legal liabilities for Oklahoma businesses3.

Commercial Auto Insurance Basics

If your Oklahoma business owns or uses vehicles for work-whether making deliveries, transporting tools, or visiting clients-you must have commercial auto insurance. State law requires minimum liability coverage of $25,000 per person, $50,000 per accident for bodily injury, and $25,000 for property damage (25/50/25).

Key points:

• All business-owned vehicles must be insured with a commercial policy.

• Personal auto insurance does not cover vehicles used for business purposes.

• Additional coverage (collision, comprehensive, uninsured motorist) is recommended, especially given Oklahoma’s severe weather and high rate of uninsured drivers.

• Specialized industries (e.g., trucking, livery) may require higher limits or additional endorsements.

Professional Liability for Certain Jobs

Professional liability insurance (also called errors and omissions or malpractice insurance) protects against claims of negligence, errors, or omissions in the services you provide. In Oklahoma, this coverage is especially important for:

• Healthcare professionals (often mandatory for licensing)

• Lawyers, accountants, architects, engineers, and consultants

• Any business providing specialized advice or services

While not universally required by law, many clients or contracts mandate professional liability coverage before work can begin. Some professions, such as anesthesiologist assistants, have specific statutory minimums for malpractice insurance.

Is General Liability Insurance Mandatory?

General liability insurance is not required by Oklahoma law for most businesses, but it is strongly recommended and often required by landlords, lenders, or for certain licenses (e.g., restaurants and bars seeking a liquor license). Some cities or industries may have their own mandates, such as construction contractors in Oklahoma City.

General liability covers:

• Third-party bodily injury (e.g., customer slip-and-fall)

• Property damage to others

• Legal fees and settlements for covered claims

Many commercial leases and contracts require proof of general liability insurance.

Other Useful Coverages for Businesses

While not required by law, these policies offer valuable protection for Oklahoma businesses:

• Commercial Property Insurance: Covers buildings, equipment, inventory, and contents from fire, theft, vandalism, and some natural disasters.

• Cyber Liability Insurance: Protects against losses from data breaches and cyberattacks, especially important for businesses handling sensitive data.

• Business Owner’s Policy (BOP): Bundles general liability and property insurance for cost savings.

• Hired and Non-Owned Auto Insurance: Covers vehicles used for business that are not owned by the company.

• Umbrella Insurance: Increases the liability limits of your existing policies for extra protection.

• Product Liability, Equipment Breakdown, and Business Income Insurance: Useful for manufacturers, contractors, and businesses with significant physical or operational assets.