Do I need business insurance to start?

Business Insurance Requirements for Starting a Business in Vermont

When starting a business in Vermont, understanding insurance requirements is crucial for operational readiness and compliance.

Is Business Insurance Mandatory in Vermont?

As of 2026, Vermont does not require all businesses to have general business insurance to start operations. However, specific types of insurance are mandatory depending on your business activities and workforce.

Types of Insurance to Consider

• Workers' Compensation Insurance: Required if you have employees. This insurance covers medical costs and lost wages if an employee is injured on the job.
• Unemployment Insurance: Employers must register and contribute to unemployment insurance for their employees.
• Commercial Auto Insurance: Necessary if your business uses vehicles for operations.
• Professional Liability Insurance: Recommended for service-based businesses to protect against claims of negligence or errors.
• General Liability Insurance: While not always required, it is highly advisable to protect against third-party claims for bodily injury or property damage.

Operational Considerations

Securing the appropriate insurance supports compliance with Vermont's employment and business regulations. It also safeguards your business assets and helps maintain smooth payroll and recordkeeping processes.

Before finalizing your insurance, coordinate with your business registration and licensing steps to align coverage with your operational needs.