Who Needs Business Insurance in West Virginia

While not every type of business insurance is legally required, most West Virginia businesses benefit from carrying coverage. Key points:

• Any business with one or more employees (full- or part-time) must carry workers’ compensation insurance, with limited exceptio.

• Businesses that own or use vehicles for work must have commercial auto insurance.

• Contractors and certain licensed professionals may be required to show proof of general liability or professional liability insurance to operate legally.

• Landlords, lenders, and clients often require proof of general liability insurance as part of leases or contracts.

• All businesses should consider insurance to protect against lawsuits, property damage, cyber risks, and business interruptions.

Workers’ Comp: When It’s Required

West Virginia law requires nearly all employers with one or more employees to carry workers’ compensation insurance. This includes both full-time and part-time workers.

Exemptions include:

• Domestic workers in private homes

• Agricultural workers at businesses with five or fewer employees

• Casual workers, church employees, professional sports participants, and certain volunteers

• Independent contractors (must meet strict criteria to be classified as such)

Penalties for non-compliance: Fines, business closure, and liability for injury claims. Workers’ comp covers medical costs, lost wages, and disability benefits for employees injured or made ill on the job.

Commercial Auto Insurance Basics

All business-owned vehicles in West Virginia must be covered by commercial auto insurance. Minimum required coverage is:

• Bodily injury liability: $25,000 per person / $50,000 per accident

• Property damage liability: $25,000 per accident

• Uninsured/underinsured motorist: $25,000 per person / $50,000 per accident

Personal auto policies do not cover business use. Hired and Non-Owned Auto Insurance (HNOA) is recommended if employees use personal, leased, or rented vehicles for work. Penalties for non-compliance can include fines, license suspension, and even jail time.

Professional Liability for Certain Jobs

Professional liability insurance (errors & omissions/E&O) is not required by law for most businesses, but is mandatory for some licensed professions (e.g., acupuncturists must carry a minimum of $10,000 per claim).

• Who should consider it: Consultants, architects, engineers, healthcare providers, IT professionals, and others who provide advice or professional services.

• Often required by: Professional associations, licensing boards, and client contracts.

• Covers: Claims of negligence, errors, omissions, missed deadlines, breach of contract, and related legal defense costs.

Is General Liability Insurance Mandatory?

General liability insurance is not required by West Virginia law for most businesses, but:

• It is often required by landlords, lenders, or for certain business licenses and contracts.

• Contractors are commonly required to carry general liability insurance, with typical limits of $1 million per occurrence and $2 million aggregate.

• Strongly recommended for all businesses to protect against third-party bodily injury, property damage, and legal claims.

Typical cost: $22–$66 per month for small businesses, depending on size and risk.

Other Useful Coverages for Businesses

West Virginia businesses should consider these additional policies for comprehensive protection:

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

• Commercial Property Insurance: Covers buildings, inventory, and equipment.

• Business Interruption Insurance: Replaces lost income after a covered disaster.

• Cyber Liability Insurance: Protects against data breaches and cyberattacks.

• Umbrella Insurance: Increases liability limits above existing policies.

• Employment Practices Liability: Covers claims of wrongful termination, discrimination, or harassment.

• Inland Marine Insurance: Covers tools, equipment, and property in transit.