similar risks. Business automobile coverage protects against liability and certain physical damage losses involving vehicles owned or leased by the business. Many policies also cover certain medical payments and related benefits, regardless of fault, within stated limits. For many small businesses, general liability and commercial property are combined into a single, cost‑effective “Business Owner’s Policy” (BOP). If your business owns vehicles, you will also need commercial auto insurance; this is separate from any personal auto policy and is generally required for business‑owned vehicles. Bonds Bonds are not insurance but are closely related financial instruments often obtained through insurance agents: • Fidelity bonds protect the business against loss caused by dishonest acts of employees, such as theft of money or property. • Surety bonds guarantee the performance of certain obligations, whether contractual or statutory. They are common in the construction industry and are frequently required on public projects or certain licensed activities. Workers’ compensation insurance Workers’ compensation insurance provides statutory benefits to employees who suffer work‑related injuries or occupational illnesses. In Minnesota, most employers with one or more employees are legally required to carry workers’ compensation coverage. Benefits typically include medical expenses, partial wage replacement, and disability benefits. See the section of this Guide on Workers’ Compensation for a more detailed discussion. Group insurance for employees Group life, health, dental, disability, and other employee benefit programs are often offered to attract and retain staff. These plans must comply with federal and state laws (including ERISA, ACA, and Minnesota insurance statutes). Requirements and common plan structures are described in more detail in the Employee Benefits section of this Guide. Product liability Product liability coverage protects manufacturers, distributors, and in some cases retailers from claims that a product they made or sold caused bodily injury or property damage. This coverage generally applies once the product leaves the manufacturer’s or seller’s control and is usually provided as part of a general liability policy, though higher‑risk businesses may need additional limits or specialized endorsements.
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