Oregon State Minimum Requirements for Business Insurance

 Starting or growing a business in Oregon is exciting, but it also means ensuring proper protection. Business insurance helps safeguard your investment from the unexpected. In some cases, it’s not just a brilliant idea—it’s required by law.

So, what are the minimum requirements for business insurance in Oregon? And how can you be sure you’re meeting the legal standards while protecting your growing business? Let’s break it down.

Oregon’s Required Business Insurance Coverage

 Workers’ Compensation Insurance

Oregon law requires you to carry workers’ compensation insurance if your business has one or more employees, regardless of whether they’re full-time, part-time, or seasonal. This coverage helps pay for medical expenses and lost wages if an employee gets injured on the job.

Note: Sole proprietors without employees are exempt, but may carry workers’ comp for personal protection.

Commercial Auto Insurance

If your business owns or operates private passenger vehicles, commercial auto insurance is mandatory. Oregon’s minimum coverage requirements include:

• $25,000 per person for bodily injury
  
• $50,000 per accident for bodily injury
  
• $20,000 for property damage
  
• Uninsured motorist and personal injury protection (PIP) coverage is also required for operators of private passenger automobiles, trucks and vans.

Keep in mind, if your business involves operating heavy vehicles (over 10,000 GVW) or if your business is trucking, you will need to carry at least $750,000 liability limits.

Coverage That’s Optional—But Recommended

While not mandated by the state, these policies are often essential depending on your business type:

General Liability Insurance

This is a foundational coverage that almost every business should carry. General Liability Insurance protects your company against:

• Bodily injury: If a customer, vendor, or third party gets hurt on your premises or because of your operations, this coverage can help pay for medical costs and potential lawsuits.
  
• Property damage: This coverage kicks in if your business accidentally damages someone else’s property (e.g., a contractor breaks a client’s window).
  
• Legal claims: It covers the legal fees, settlements, or judgments if your business is sued for covered incidents.
  

 Think of it as your basic shield against everyday business risks.

Professional Liability Insurance (Errors & Omissions)

If your business offers advice, services, or consulting, Professional Liability Insurance—also known as E&O insurance—is critical.

• Covers claims of negligence, errors, or omissions in your services.
  
• Protects against financial loss suffered by clients due to your advice or services.
  
• Common for consultants, lawyers, architects, IT professionals, and financial advisors.