Best Small Business Insurance in Wyoming

Wyoming Insurance Requirements

The State of Wyoming requires that every business that employs any workers within the state carry workers' compensation insurance. 

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

Workers’ Compensation Insurance

Workers’ compensation in Wyoming is managed by the Wyoming Department of Workforce Services’ Workers’ Compensation Division, and employers must purchase workers' compensation insurance through the agency. Wyoming is one of only four states (along with North Dakota, Ohio, and Washington) where the state manages workers’ compensation insurance rather than private insurance agencies.

Per Wyoming statute, any employer subject to this act shall not commence business or engage in work in this state without applying for and receiving coverage from the Wyoming Workers’ Compensation Division with few exceptions.

<p 27-14-101: Short Title; Statement of Intent

(b) It is the intent of the legislature in creating the Wyoming worker's compensation division that the laws administered by it to provide a worker's benefit system be interpreted to assure the quick and efficient delivery of indemnity and medical benefits to injured and disabled workers at a reasonable cost to the employers who are subject to the Worker's Compensation Act. It is the specific intent of the legislature that benefit claims cases be decided on their merits and that the common law rule of "liberal construction" based on the supposed "remedial" basis of workers' benefits legislation shall not apply in these cases. The worker's benefit system in Wyoming is based on a mutual renunciation of common law rights and defenses by employers and employees alike. Accordingly, the legislature declares that the Worker's Compensation Act is not remedial in any sense and is not to be given a broad liberal construction in favor of any party.

§ 27-14-207: Employer Registration Required; Acquiring Trade of Another Employer; Transfer of Experience and Assignment of Rates; Out of State Employers

(a) Any employer subject to this act shall not commence business or engage in work in this state without applying for coverage under this act and receiving a statement of coverage from the division.

Chapter 3 of the Division of Workers Compensation Rules in the Wyoming Administrative Rules outlines the rules and penalties for failure to comply with workers’ compensation requirements and delinquency in paying workers’ compensation premiums.

Section 1. Delinquency – Case Liability 

(a) Employers will be charged for all injury case costs if the employers' account is in noncompliance in the following circumstances:

(i) Delinquent During the Reporting Period the Injury Occurred. Employers whose accounts are in a delinquent status for the reporting period during which an injury occurred will be charged case costs for the life of any such injury. 

(ii) Injured Worker not Reported. Employers who omit the name of any injured worker on the Division's report form corresponding to the month of injury and fail to pay premium on that injured worker's earnings will be charged case costs for the life of any such injury.

(iii) No Account on Date of Injury. Employers who fail to establish an account, or fail to reactivate an inactive account on any date of injury will be charged case costs for the life of any such injury. 

(b) Employers shall be deemed delinquent if premiums remain unpaid more than 30 days following the due date.

Commercial Auto Insurance

The State of Wyoming requires any automobile driven within the state to carry auto insurance, including business and commercial vehicles. According to the Wyoming Department of Insurance, motor vehicles operated within the state of Wyoming must carry liability coverage for financial responsibility. Allowing a driver to operate a motor vehicle without proof of financial responsibility is likewise illegal.

Wyoming statute governs the financial responsibility of owning and operating an automobile in the state of Wyoming and sets penalties for failure to maintain proof of financial responsibility:

§ 31-9-405: “Liability Policy” Defined; Required Coverage; Additional Clauses

(a) As used in this act “liability policy” means an owner's or an operator's policy of liability insurance, certified as provided in W.S. 31-9-403 or 31-9-404 as proof of financial responsibility, and issued, except as otherwise provided in W.S. 31-9-404, by an insurance carrier authorized to transact business in this state, to or for the benefit of the person named as insured.

(b) An owner's policy of liability insurance shall:

(i) Designate by explicit description or by appropriate reference all motor vehicles with respect to which coverage is to be granted;  and

(ii) Insure the person named and, except for persons specifically excluded pursuant to W.S. 26-35-105, any other person, as insured, using any covered motor vehicle with the express or implied permission of the named insured against loss from the liability imposed by law for damages arising out of the ownership, maintenance or use of the motor vehicle within the United States of America or the Dominion of Canada, subject to limits exclusive of interest and costs with respect to each motor vehicle, as follows:  twenty-five thousand dollars ($25,000.00) because of bodily injury to or death of one (1) person in any one (1) accident and, subject to the limit for one (1) person, fifty thousand dollars ($50,000.00) because of bodily injury to or death of two (2) or more persons in any one (1) accident and twenty thousand dollars ($20,000.00) because of injury to or destruction of property of others in any one (1) accident.

(c) An operator's policy of liability insurance shall insure the person named as insured against loss from the liability imposed upon him by law for damages arising out of the use by him of any motor vehicle not owned by him, within the same territorial limits and subject to the same limits of liability as provided by subsection (b) of this section.

The state of Wyoming also requires that anyone operating a motor vehicle be able to provide proof of financial responsibility at all times and defines minimum coverage limits of $25,000 per person, $50,000 per accident, and $20,000 in property damage coverage:

§ 31-9-102: Definitions

(xi)  "Proof of financial responsibility" means evidence of ability to respond in damages for liability, resulting from accidents occurring subsequent to the effective date of the proof, arising out of the ownership, maintenance or use of a motor vehicle, in the amount of twenty-five thousand dollars ($25,000.00) because of bodily injury to or death of one (1) person in any one (1) accident, and subject to the limit for one (1) person, in the amount of fifty thousand dollars ($50,000.00) because of bodily injury to or death of two (2) or more persons in any one (1) accident, and in the amount of twenty thousand dollars ($20,000.00) because of injury to or destruction of property of others in any one (1) accident.

Data Breach Insurance

The State of Wyoming has laws requiring businesses that handle individuals' personal identifying information (PII) and personal health information (PHI) to notify individuals of security breaches involving their personal information.

Wyoming statute says that businesses that do business in Wyoming or keep personal information about people who live in Wyoming must tell customers or employees if their personal information has been accessed by any unauthorized persons. 

§ 40-12-502: Computer Security Breach; Notice to Affected Persons

(a) An individual or commercial entity that conducts business in Wyoming and that owns or licenses computerized data that includes personal identifying information about a resident of Wyoming shall, when it becomes aware of a breach of the security of the system, conduct in good faith a reasonable and prompt investigation to determine the likelihood that personal identifying information has been or will be misused.  If the investigation determines that the misuse of personal identifying information about a Wyoming resident has occurred or is reasonably likely to occur, the individual or the commercial entity shall give notice as soon as possible to the affected Wyoming resident.  Notice shall be made in the most expedient time possible and without unreasonable delay, consistent with the legitimate needs of law enforcement and consistent with any measures necessary to determine the scope of the breach and to restore the reasonable integrity of the computerized data system.

Even though neither data breach insurance nor cyber liability insurance is required in Wyoming, it can cost a lot to follow the law if your business gets hacked.

Wyoming Insurance Resources

Center for Consumer Information and Insurance Oversight (CCIIO)
Wyoming Department of Workforce Services
Wyoming Workers’ Compensation Division
Wyoming Department of Transportation
Wyoming Department of Insurance

General Liability Insurance

The vast majority of Wyoming 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

Wyoming requires businesses with one or more employees to carry workers’ compensation insurance with limited exceptions. 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 Wyoming 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.