Do I need business insurance to start?

Business Insurance Requirements for Starting a Business in Connecticut

In Connecticut, business insurance is not universally mandatory to start a business, but certain types of insurance are required depending on your business activities and structure.

Types of Insurance Commonly Required

• Workers' Compensation Insurance: If you have employees, Connecticut law requires you to carry workers' compensation insurance to cover workplace injuries.
• Unemployment Insurance: Businesses with employees must also register for and contribute to state unemployment insurance.
• Commercial Auto Insurance: Required if your business uses vehicles for operations.
• Professional Liability Insurance: Required for certain licensed professions such as healthcare providers or contractors.

Recommended Insurance for Most Businesses

While not always legally required, these insurance types help protect your business operations and assets:

• General Liability Insurance: Protects against claims of bodily injury or property damage.
• Property Insurance: Covers damage to your business property and equipment.
• Business Interruption Insurance: Helps cover lost income during unexpected closures.

Operational Considerations

As of 2026, before starting your business in Connecticut, evaluate your insurance needs based on your business size, industry, and risk exposure. Incorporate insurance costs into your financial planning and bookkeeping processes. Ensuring proper coverage supports compliance and protects your business from operational risks.