Utah Business Insurance

What Utah Law Actually Requires

Utah doesn't require most businesses to carry general liability insurance. But three rules catch owners off guard, so read these closely.

• Workers' compensation for your first employee. With few exceptions, every Utah employer must carry it under Utah Code section 34A-2-201. You can buy from a private carrier, the state-related Workers' Compensation Fund, or self-insure with approval. Skip it, and the Labor Commission can fine you at least $1,000 or three times the premium you avoided, whichever is greater, with each day counted separately. Worse, you can lose "exclusive remedy," which means an injured worker could sue you directly.
• Commercial auto if you drive for business. Utah raised its minimums in 2025. The floor is now 30/65/25, meaning $30,000 for bodily injury per person, $65,000 per accident, and $25,000 for property damage, plus personal injury protection (PIP), because Utah is a no-fault state. The state's Insure-Rite system tracks registered vehicles electronically, so a lapse can trigger registration trouble fast.
• Contractor licensing through DOPL. If you do construction, repair, or demolition work above $3,000 in labor and materials, you generally need a license from the Division of Professional Licensing. Licensed contractors must carry general liability and list DOPL as a certificate holder. Many also post a surety bond. Coverage minimums on DOPL paperwork have varied between sources lately, so confirm the current figure with DOPL before you apply.

Sole proprietors, partners, and LLC members with no employees can usually request a workers' comp waiver from the Labor Commission instead of buying a policy. Corporate officers who own at least 10% of the company can often opt out, too, up to five of them.

What Most Utah Businesses Buy

A typical Utah small business builds its program from a few core lines. Each link explains the coverage in more detail.

• General liability insurance for third-party injury and property damage claims.
• A business owner's policy (BOP) that bundles liability and commercial property coverage is usually cheaper than buying both separately.
• Workers' compensation once you have employees on payroll.
• Commercial auto for trucks, vans, and any vehicle used for business.
• Commercial property for your building, equipment, and inventory.
• Professional liability for service firms that give advice or design work.
• Cyber liability as Utah's tech corridor continues to grow.
• Builder's risk for projects under construction.
• Inland marine for tools and equipment that move between job sites.

One Utah-specific note on property: standard policies usually exclude earthquake damage. With the Wasatch Fault running through the most populated part of the state, many owners along the Wasatch Front add earthquake coverage as a separate endorsement. It's worth asking about.

Common Mistakes Utah Owners Make

• Carrying state-minimum auto limits on a work truck. A 30/65/25 policy won't come close to a serious claim. Most businesses move to a $1 million limit.
• Assuming a workers' comp waiver covers a crew. A waiver works for an owner with no employees. Hire one person and the rule changes.
• Letting a vehicle policy lapse off-season. Insure-Rite flags it, and registration problems follow.
• Buying only the DOPL minimum. The license requirement and the contract requirement are two different numbers. Clients usually want more.
• Skipping earthquake coverage on the Wasatch Front. Standard property policies typically leave quake damage out.