Best Small Business Insurance in West Virginia

West Virginia Insurance Requirements

The state of West Virginia mandates that any company with five or more employees (whether full-time or part-time) operating within the state must have workers' compensation insurance. 

Commercial auto insurance is also required by law for any business whose employees use corporate vehicles as part of their jobs.

In addition, the state of West Virginia has passed legislation on data breaches, which mandates that customers and employees whose information has been compromised must be notified. Cyber liability insurance may not be required by law, but it is highly recommended because the costs of data breaches and cyberattacks can quickly add up.

Workers’ Compensation Insurance

Workers’ compensation has been a requirement in West Virginia since 1913 and is governed under the West Virginia Code. Workers’ compensation in West Virginia is managed by the West Virginia Offices of the Insurance Commissioner’s Employer Coverage Unit.

West Virginia law specifies that nearly all employers within the state must provide worker’s compensation insurance, with few exceptions:

§ 23-2-1: Employers subject to chapter; elections not to provide certain coverages; notices; filing of business registration certificates.

(a) The State of West Virginia and all governmental agencies or departments created by it, including county boards of education, political subdivisions of the state, any volunteer fire department or company, and other emergency service organizations as defined by §15-5-1 et seq. of this code, and all persons, firms, associations, and corporations regularly employing another person or persons for the purpose of carrying on any form of industry, service, or business in this state, are employers within the meaning of this chapter and are subject to all requirements of this chapter and all rules prescribed by the Industrial Council pursuant to §23-2C-5 of this code. 

West Virginia law also requires that employers post notice of workers’ compensation insurance for their employees' access:

§ 23-2C-15: Mandatory Coverage; Changing of Coverage

(c) Every employer shall post a notice upon its premises in a conspicuous place identifying its workers' compensation insurer. The notice must include the name, business address and telephone number of the insurer and of the person to contact with questions about a claim.

Commercial Auto Insurance

The State of West Virginia also requires any business whose employees use corporate vehicles as part of their jobs to carry commercial auto insurance. According to the West Virginia Department of Insurance, it is against the law to drive a car without insurance or other proof of financial responsibility. It is also against the law for a car owner to permit a driver to use their vehicle without proof of financial responsibility.

West Virginia Code governs the financial responsibility of owning and operating an automobile and sets penalties for failure to maintain proof of financial responsibility:

§ 17A-3-3: Application for Registration; Statement of Insurance or Other Proof of Security to Accompany Application; Criminal Penalties; Fees; Special Revolving Fund

(e) A statement under penalty of false swearing that liability insurance is in effect and will continue to be in effect through the entire term of the vehicle registration period within limits which may not be less than the requirement of section two, article four, chapter seventeen-d of this code, which shall contain the name and National Association of Insurance commissioners assigned code of the applicant's insurer, the policy number, and any other information required by the commissioner of Motor Vehicles or that the applicant has qualified as a self-insurer meeting the requirements of section two, article six of said chapter and that as a self-insurer he or she has complied with the minimum security requirements as established in section two, article four of that chapter. If the commissioner determines that the required security is not or was not in effect, he or she shall suspend the vehicle owner's driver's license and revoke the vehicle registration in accordance with the provisions of article two-a, chapter seventeen-d of this code.

If any person making an application required under the provisions of this section, in the application knowingly provides false information, false proof of security or a false statement of insurance, or if any person, including an applicant's insurance agent, knowingly counsels, advises, aids or abets another in providing false information, false proof of security, or a false statement of insurance in the application he or she is guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $500, or be imprisoned in jail for a period not to exceed fifteen days, or both fined and imprisoned and, in addition to the fine or imprisonment, shall have his or her driver's license suspended for a period of ninety days and vehicle registration revoked if applicable.

West Virginia also requires drivers to show proof of financial responsibility and sets minimum coverage limits of $25,000 per person, $50,000 per accident, and $25,000 for property damage:

§17D-4-2: "Proof of Financial Responsibility" Defined

(b) Beginning January 1, 2016, "proof of financial responsibility" means proof of ability to respond in damages for liability, on account of accident occurring subsequent to the effective date of the proof, arising out of the ownership, operation, maintenance, or use of a motor vehicle, trailer or semitrailer in the amount of $25,000 because of bodily injury to or death of one person in any one accident, and, subject to the limit for one person, in the amount of $50,000 because of bodily injury to or death of two or more persons in any one accident, and in the amount of $25,000 because of injury to or destruction of property of others in any one accident: Provided, That proof of financial responsibility provided by an insurance policy in effect on December 31, 2015 in the minimum amounts required in subdivision (a) of this section shall continue to provide adequate proof of financial responsibility required by this chapter until the policy expires or is renewed.

Data Breach Insurance

The state of West Virginia also has laws that require businesses that handle people's personal identifying information (PII) and personal health information (PHI) to tell people when their personal information has been exposed to a security breach.

The West Virginia Consumer Credit And Protection Act requires businesses that do business in West Virginia or keep personal information about people who live in the state must tell customers or employees if their personal information has been accessed or stolen. West Virginia does not mandate businesses to carry data breach or cyber liability insurance; yet, the expense of meeting legal requirements following a cyber assault can be substantial. 

§ 46A-2A-103: Procedures deemed in compliance with security breach notice requirements.

(a) An entity that maintains its own notification procedures as part of an information privacy or security policy for the treatment of personal information and that are consistent with the timing requirements of this article shall be deemed to be in compliance with the notification requirements of this article if it notifies residents of this state in accordance with its procedures in the event of a breach of security of the system.

(b) A financial institution that responds in accordance with the notification guidelines prescribed by the Federal Interagency Guidance on Response Programs for Unauthorized Access to Customer Information and Customer Notice is deemed to be in compliance with this article.

(c) An entity that complies with the notification requirements or procedures pursuant to the rules, regulation, procedures or guidelines established by the entity's primary or functional regulator shall be in compliance with this article.

West Virginia Insurance Resources

Center for Consumer Information and Insurance Oversight (CCIIO)
West Virginia Department of Transportation
West Virginia Offices of the Insurance Commissioner
Offices of the Insurance Commissioner Employer Coverage Unit
Business Insurance Requirements
West Virginia Department of Economic Development Insurance

General Liability Insurance

The vast majority of West Virginia 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

West Virginia requires businesses with any full-time or part-time employees to carry workers’ compensation insurance, although there are some very specific expectations. 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 West Virginia 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.