Best Small Business Insurance in Oregon

Oregon Insurance Requirements

Workers' compensation insurance is required by the state of Oregon for any business with any full-time or part-time employees. 

Any company motor vehicles registered or operated in the State of Oregon must also be covered by commercial auto insurance.

Also, Oregon has laws about data breaches that say customers and workers whose information was exposed must be formally notified. Cyber liability insurance is not required by law, but it is highly recommended because the costs of data breaches and cyber attacks can quickly add up and threaten the life of your business.

Workers’ Compensation Insurance

Oregon has had laws in place governing workers’ compensation since 1914. Oregon’s current workers’ compensation system is governed under the Oregon's Workmen’s Compensation Law. Oregon Law Chapter 656 requires that nearly all employers in the state of Oregon provide worker’s compensation insurance:

§ 656.017: Employer required to pay compensation and perform other duties; state not authorized to be direct responsibility employer

(1) Every employer subject to this chapter shall maintain assurance with the Director of the Department of Consumer and Business Services that subject workers of the employer and their beneficiaries will receive compensation for compensable injuries as provided by this chapter and that the employer will perform all duties and pay other obligations required under this chapter, by qualifying:

(a) As a carrier-insured employer; or

(b) As a self-insured employer as provided by ORS 656.407.

(2) Notwithstanding ORS chapter 278, this state shall provide compensation insurance for its employees through the State Accident Insurance Fund Corporation.

(3) Any employer required by the statutes of this state other than this chapter or by the rules, regulations, contracts or procedures of any agency of the federal government, this state or a political subdivision of this state to provide or agree to provide workers’ compensation coverage, either directly or through bond requirements, may provide such coverage by any method provided in this section.

Employers who fail to obtain workers' compensation insurance for their employees may be subject to penalties, fines and legal costs:

§ 656.052: Prohibition against employment without coverage; proposed order declaring noncomplying employer; effect of failure to comply

(1) No person shall engage as a subject employer unless and until the person has provided coverage pursuant to ORS 656.017 for subject workers the person employs.

(2) Whenever the Director of the Department of Consumer and Business Services has reason to believe that any person has violated subsection (1) of this section, the director shall serve upon the person a proposed order declaring the person to be a noncomplying employer and containing the amount, if any, of civil penalty to be assessed pursuant to ORS 656.735 (1).

(3) If any person fails to comply with ORS 656.017 after an order declaring the person to be a noncomplying employer has become final by operation of law or on appeal, the circuit court of the county in which the person resides or in which the person employs workers shall, upon the commencement of a suit by the director for that purpose, permanently enjoin the person from employing subject workers without complying with ORS 656.017. Upon the filing of such a suit, the court shall set a day for hearing and shall cause notice thereof to be served upon the noncomplying employer. The hearing shall be not less than five days from the service of the notice.

(4) The court may award reasonable attorney fees to the director if the director prevails in an action under subsection (3) of this section. The court may award reasonable attorney fees to a defendant who prevails in an action under subsection (3) of this section if the court determines that the director had no objectively reasonable basis for asserting the claim or no reasonable basis for appealing an adverse decision of the trial court.

Commercial Auto Insurance

The State of Oregon also requires that any vehicle operated within the state carry commercial auto insurance. Oregon’s Financial Responsibility Law governs the financial responsibility of owning and operating an automobile in the state of Oregon and sets penalties for failure to maintain proof of financial responsibility. 

According to statute, it is against the law to drive a car without insurance or other proof of financial responsibility. It is also illegal for a vehicle owner to give a driver permission to use their car without proof of financial responsibility:

§ 806.010: Driving uninsured prohibited; penalty

(1) A person commits the offense of driving uninsured if the person operates a motor vehicle in this state on any highway or premises open to the public in this state without either:

a) The person being insured while driving the vehicle under a motor vehicle liability insurance policy that meets the requirements described under ORS 806.080; or

(b) The person or the owner of the vehicle providing the Department of Transportation with other satisfactory proof of compliance with the financial responsibility requirements of this state.

(2) Exemptions from this section are established under ORS 806.020.

(3) In addition to other penalties under this section the following apply:

(a) A person who is involved in a motor vehicle accident at any time the person is in violation of this section is subject to suspension of the person’s driving privileges under ORS 809.417.

(b) A person who is convicted of violating this section is subject to ORS 806.230, if the person does not make future responsibility filings as required by that section.

(4) A person convicted for violation of this section must file with the department, and thereafter maintain for a period of three years, proof of financial responsibility that complies with ORS 806.060. Failure to comply with this subsection is subject to ORS 809.415.

(5) The offense described in this section, driving uninsured, is a Class B traffic violation.

The State of Oregon also sets minimum coverage limits in the amount of $25,000 per person, $50,000 per accident, and $20,000 for property damage:

§ 806.070: Minimum payment schedule

(1) This section establishes a schedule of payments for the following purposes:

(a) An insurance policy described under ORS 806.080 must provide for payment of at least amounts necessary to cover the minimum required payments under this section to qualify for use for financial responsibility under ORS 806.060.

(b) A person who is self-insured under ORS 806.130 must agree to pay according to the payment schedule established by this section.

(c) The payment schedule is the minimum required payment of a judgment for purposes of ORS 809.130 and 809.415.

(2) The schedule of payments is as follows:

(a) $25,000 because of bodily injury to or death of one person in any one accident;

(b) Subject to that limit for one person, $50,000 because of bodily injury to or death of two or more persons in any one accident; and

(c) $20,000 because of injury to or destruction of the property of others in any one accident.

Oregon’s Financial Responsibility Law also requires drivers to be able to provide proof of insurance:

§ 806.011: Proof of insurance; rules

(1) Proof of insurance issued as provided in ORS 742.447, or other current proof of compliance with financial or future responsibility requirements approved by rule by the Department of Transportation, shall be carried in each motor vehicle that is operating in this state and that is not exempt from compliance with financial or future responsibility requirements.

(2) The use of an electronic device to display proof of insurance does not constitute consent for a police officer to access other contents of the electronic device.

(3) Failure of the driver of a motor vehicle to show proof of insurance or other current proof of compliance when asked to do so by a police officer is reasonable grounds for the officer to believe that the person is operating the vehicle in violation of ORS 806.010.

(4) The registered owner of the motor vehicle may black out or otherwise obscure the residence address, business address, mailing address or vehicle address shown on the proof of insurance, or other current proof of compliance with financial or future responsibility requirements approved by rule by the department. No other information may be blacked out or otherwise obscured.

In addition, Oregon’s Financial Responsibility Law sets penalties for operating a vehicle without insurance:

§ 806.012: Failure to carry proof of compliance with financial responsibility requirements; rules; penalty 

(1) A person commits the offense of failure to carry proof of compliance with financial responsibility requirements if the person operates a motor vehicle in this state and does not have in the vehicle current proof of compliance with financial responsibility requirements.

(2) The Department of Transportation shall determine by rule what constitutes proof of compliance with financial responsibility requirements.

(3) This section does not apply:

(a) To persons operating motor vehicles that are exempt from financial responsibility requirements by ORS 806.020; or

(b) If a police officer verifies proof of compliance with financial responsibility requirements through the Law Enforcement Data System.

(4) The court shall dismiss any charge under this section if, prior to the court appearance date listed on the citation, the person charged delivers to the clerk of the court named on the citation proof of compliance with financial responsibility requirements at the time of the violation.

(5) The offense described in this section, failure to carry proof of compliance with financial responsibility requirements, is a Class B traffic violation.

Data Breach Insurance

The State of Oregon has laws requiring businesses that govern how businesses handle data breaches involving individuals' personal identifying information (PII) and personal health information (PHI). Oregon statute requires that businesses that do business in Oregon or keep personal information about people who live in Oregon notify customers or employees if their personal information has been accessed by any unauthorized persons. 

Data breach insurance and cyber liability insurance are not mandated in Oregon, but the expense of meeting legal requirements after a cyber assault can be prohibitive for many businesses.

§ 646A.604: Notice of breach of security; delay; methods of notification; contents of notice; application of notice requirement

(1) If a covered entity is subject to a breach of security or receives notice of a breach of security from a vendor, the covered entity shall give notice of the breach of security to:

(a) The consumer to whom the personal information pertains.

(b) The Attorney General, either in writing or electronically, if the number of consumers to whom the covered entity must send the notice described in paragraph (a) of this subsection exceeds 250.

(2)(a) A vendor that discovers a breach of security or has reason to believe that a breach of security has occurred shall notify a covered entity with which the vendor has a contract as soon as is practicable but not later than 10 days after discovering the breach of security or having a reason to believe that the breach of security occurred.

(b) If a vendor has a contract with another vendor that, in turn, has a contract with a covered entity, the vendor shall notify the other vendor of a breach of security as provided in paragraph (a) of this subsection.

(c) A vendor shall notify the Attorney General in writing or electronically if the vendor was subject to a breach of security that involved the personal information of more than 250 consumers or a number of consumers that the vendor could not determine. This paragraph does not apply to the vendor if the covered entity described in paragraph (a) or (b) of this subsection has notified the Attorney General in accordance with the requirements of this section.

(3)(a) A covered entity shall give notice of a breach of security in the most expeditious manner possible, without unreasonable delay, but not later than 45 days after discovering or receiving notification of the breach of security.

(b) Before providing the notice described in paragraph (a) of this subsection, a covered entity shall undertake reasonable measures that are necessary to:

(A) Determine sufficient contact information for the intended recipient of the notice;

(B) Determine the scope of the breach of security; and

(C) Restore the reasonable integrity, security and confidentiality of the personal information.

(c) A covered entity may delay giving the notice described in paragraph (a) of this subsection only if a law enforcement agency determines that a notification will impede a criminal investigation and if the law enforcement agency requests in writing that the covered entity delay the notification.

(4) A covered entity may notify a consumer of a breach of security:

(a) In writing;

(b) Electronically, if the covered entity customarily communicates with the consumer electronically or if the notice is consistent with the provisions regarding electronic records and signatures set forth in the Electronic Signatures in Global and National Commerce Act (15 U.S.C. 7001) as that Act existed on January 1, 2020;

(c) By telephone, if the covered entity contacts the affected consumer directly; or

(d) With substitute notice, if the covered entity demonstrates that the cost of notification otherwise would exceed $250,000 or that the affected class of consumers exceeds 350,000, or if the covered entity does not have sufficient contact information to notify affected consumers.

Oregon Insurance Resources

Oregon Department of Consumer and Business Services
Oregon Workers’ Compensation Division
Oregon Small Business Ombudsman for Workers’ Compensation
Oregon Department of Transportation
Oregon Division of Financial Regulation
Oregon Small Business Guide to Insurance and Workplace Safety
Oregon Workers’ Compensation Frequently Asked Questions
Oregon Department of Financial Resources Insurance for Business
Oregon Department of Transportation Insurance Requirements

General Liability Insurance

The vast majority of Oregon companies purchase general liability insurance from an insurance company even though it is not legally required. This type of business liability insurance covers third-party bodily injury, third-party property damage, advertising liability, libel, slander, copyright issue, and other common claims faced by companies across various industries. 

General liability insurance is one of the most important types of business insurance your company can purchase.

Business Owner’s Policy

A business owner’s policy (BOP) is an affordable way to bundle business insurance coverages. This type of policy includes commercial general liability insurance with commercial business property insurance. Many small business owners with a physical business space opt for this coverage.

Commercial Auto Insurance

You need to carry commercial auto insurance if your company uses vehicles to transport people or goods. This type of insurance is very similar to personal auto insurance and covers liability, medical costs, collisions, and uninsured/underinsured motorists. A commercial auto policy also covers vehicles rented or owned by your company and employees who use their own vehicles for company business.

Workers’ Compensation Insurance

Oregon requires businesses with at least one full-time or part-time employee to carry workers’ compensation insurance. Taking out workers' compensation insurance puts a limit on the amount and type of compensation that an injured employee may receive. The limits are set by law.

Employee Health/Life/Disability Insurance

Companies that provide health, life, and/or disability insurance as a fringe benefit will need appropriate Oregon insurance. Under the Affordable Care Act, firms with more than 50 full-time employees must offer health insurance or pay an expensive penalty.

Professional Liability Insurance

Professional liability insurance covers financial risks to attorneys, accountants, and other people who provide professional services or expertise. Professional liability coverage varies depending on the industry but usually includes negligence, legal defense, slander or libel, and copyright and trademark disputes. 

Professional liability insurance includes errors and omissions (E&O) insurance.

Data Breach Insurance

If your company hosts customers’ personal information on its servers and those servers are hacked, lawsuits and damages can result. Data breach insurance protects you in these cases. 

Cyber Liability Insurance

Similar to but more comprehensive than data breach insurance, cyber liability insurance may pay for legal expenses related to a data breach or set up a call center for individuals affected by a breach. It also may pay for active protection against cyberattacks.

Commercial Crime Insurance

Crimes like extortion, forgery, burglary, computer fraud, and embezzlement are covered by commercial crime insurance. Situations in which this type of insurance is particularly useful include dishonest or libelous acts by employees.

Fiduciary Liability Insurance

Fiduciaries, who are legally required to act in plan participants’ best interests rather than the company’s when choosing advisors and investments, should consider this type of insurance coverage. It covers them if they are sued for allegedly providing negligent investment advice or administering plans or benefits incorrectly. 

Third parties like out-of-company consultants and benefit plan administrators are usually not protected.

Directors and Officers Insurance

Any company with directors and officers should consider directors and officers (D&O) insurance coverage, a type of liability insurance that reimburses directors and officers for claims made against them regarding harm allegedly caused by their management decisions.

Executive Risk Coverage

Executive risk insurance is business liability insurance that provides coverage for fraud, D&O, employment practices, initial public offerings, pension funds, extortion, and professional negligence.