Georgia Business Insurance and Workers’ Comp Requirements

Who Needs Business Insurance in Georgia?

While Georgia does not require general liability insurance for every business, certain types of insurance are legally mandated, and many companies need insurance coverage to sign contracts, leases, or licenses.

You likely need business insurance in Georgia if:

• You employ staff

• You own, rent, or operate a business property

• You use vehicles for work-related activities

• You provide professional services, consulting, or advice

• You must meet client, government, or landlord insurance requirements

Even when not legally required, business insurance protects against lawsuits, accidents, property losses, and unexpected disruptions.

Workers’ Comp: When It’s Required

In Georgia, workers’ compensation insurance is required if your business has:

• Three or more employees (including full-time, part-time, and seasonal workers).

Key points:

• Officers of a corporation or LLC members count toward the three-employee threshold unless they opt out.

• Workers’ comp covers medical expenses, disability benefits, rehabilitation costs, and death benefits for job-related injuries or illnesses.

• Workers’ comp must be purchased through a licensed insurer or approved self-insurance.

Failure to carry workers’ compensation can result in fines, penalties, and even criminal charges.

Commercial Auto Insurance Basics

If your business owns or uses vehicles, Georgia law requires commercial auto insurance.

Minimum commercial auto insurance requirements in Georgia:

• $25,000 for bodily injury per person

• $50,000 for bodily injury per accident

• $25,000 for property damage

Important:
Personal auto insurance typically excludes coverage for business use.
If employees use personal vehicles for work, you should consider Hired and Non-Owned Auto Insurance (HNOA) to close coverage gaps.

Professional Liability for Certain Jobs

Professional liability insurance (also called Errors and Omissions insurance) is highly recommended — and sometimes required — for businesses providing specialized services or advice.

Industries that often require professional liability coverage in Georgia include:

• Doctors and healthcare providers (malpractice insurance required)

• Lawyers and legal professionals

• Real estate agents and brokers

• Accountants and CPAs

• Architects and engineers

• Consultants and IT service providers

Professional liability insurance covers claims of negligence, errors, omissions, or failure to deliver services as promised.

Is General Liability Insurance Mandatory?

General liability insurance is not required by Georgia state law, but it is strongly recommended for all businesses.

In some cases, general liability coverage becomes effectively mandatory when:

• Leasing commercial property

• Signing client contracts

• Working with government entities

• Obtaining certain professional licenses

General liability insurance covers third-party bodily injury, property damage, personal injury (such as libel or slander), and related legal costs.

Other Useful Coverages for Georgia Businesses

Besides basic legal requirements, many Georgia businesses benefit from adding:

• Commercial Property Insurance: Protects your building, inventory, and equipment from fire, theft, and other perils.

• Business Owner’s Policy (BOP): Combines general liability and property coverage into one cost-effective bundle.

• Cyber Liability Insurance: Essential for businesses that collect personal data, process payments online, or are vulnerable to cyberattacks.

• Employment Practices Liability Insurance (EPLI): Covers lawsuits from employees alleging discrimination, harassment, wrongful termination, and wage disputes.

• Flood Insurance: Particularly important in flood-prone areas of Georgia (standard property policies exclude flood damage).

• Product Liability Insurance: Protects manufacturers, wholesalers, and retailers from liability claims involving defective products.

• Business Interruption Insurance: Covers lost income and operating expenses if your business must temporarily close due to a covered disaster.