Business Xpress Startup Toolkit Step 4 – Insurance & Bond

Ruth Miles (00:01):

Welcome to the Start a Business Video Series produced by the Oregon Secretary of State Sorporation Division. This video series is designed to help those starting a business in Oregon, understand the steps involved, and supplements the business express startup toolkit found online.

Ruth Miles (00:18):

Step four in starting a business is to make sure you have insurance or bonds set up to protect your business. Some businesses may be required to carry insurance and or bonds because they are part of a particular industry or trade. As a state, Oregon doesn’t require a business to carry insurance or bonds based merely on the fact that a business exists. However, there are some industries which are regulated by agencies that require insurance and bonds based on the trade of the business. For example, new construction contractors in Oregon are required to carry insurance and bonds in order to be licensed by the Construction Contractor’s Board. Prospective employers or contractors may require insurance or bond as a condition of employment or contract award.

Ruth Miles (01:06):

This most frequently occurs for doctors who are not required to carry malpractice insurance under any state law, but a hospital would normally require it before hiring the doctor as an employee or as a sub contracted business. A regulatory agency might require a bond based on the activity and history of the business. These generally won’t apply at the onset of a business operating and a business would be notified by an agency requiring this type of bond.

Ruth Miles (01:34):

If you want to know if your business will be required to have an insurance or bod use the business express, license directory to search for keywords relating to your business. If there’s an insurance or bond requirement for starting a business, that information should be displayed. Remember even though insurance isn’t always required, it’s a good idea to carry liability insurance for your business. If you aren’t sure whether you need insurance, consult your attorney. Thanks for watching and check out our other Start a Business videos for more information.