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Legal Obligation

Are you legally obligated to carry any insurance when starting a corporation?

When talking about commercial insurance, it is always a good idea to reiterate that an insurance program is, typically, tailored to the specific business being insured.  You should always discuss your particular situation with your local independent agent.  The simple answer to this question is “no.”  In general, New York State law does not require a corporation to purchase any type of insurance due to the mere existence of the corporation.
Any entity, however (Individual, Corporation, etc.), with any employees, is required by New York State law to carry two insurance policies.  Both Workers Compensation and Disability insurance must be purchased.  Since the term “employee” is used liberally, you should contact your insurance professional to see if your operations meet the legal definition. 

In the course of setting up and operating your business you may sign a contract with, for example a landlord or client, where you may be contractually obligated to carry specific insurance, for your protection as well as for the other party.  Any business, due to its mere existence, does carry with it some exposure, for which some form of insurance should be purchased, if at all possible, regardless of legal necessity.

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