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Do You Need Business Insurance to Get the Employee Retention Credit

The employee retention credit (ERC) is a refundable tax credit for small businesses that paid employees while shut down due to the COVID-19 pandemic or experienced significant declines in gross receipts from March 13, 2020, to Dec. 31, 2021. Eligible employers can claim the employee retention credit on an original or adjusted employment tax return for a period within those dates.

Who Is Eligible for ERC

According to the IRS, An employer is eligible for the ERC if it:

Is Business Insurance Required for ERC

ERC is available to businesses of all sizes and is not contingent on whether the business carries business insurance. Small business insurance, however, should be considered despite not being required for ERC, as it can help protect your business in the event a covered loss occurs.

Should I Consider Business Insurance

While not part of the eligibility requirements for ERC, business insurance is an important coverage that should be considered by most small business owners. Small business insurance helps:

  • protect businesses from financial losses that they may incur as a result of lawsuits, property damage, or other unexpected events.
  • businesses to maintain their reputation and goodwill in the event of a negative event.
  • cover medical expenses and lost wages for employees who become injured or ill on the job.

Some of the most critical coverages for small business owners include:

If you are considering whether or not to purchase small business insurance, it’s important to weigh the benefits and drawbacks of doing so. There are a number of factors that a business should consider when considering insurance, including the size of your business, the industry the business is in, and the risks that a business faces. If you are unsure whether or not you need business insurance, it is important to speak with an insurance professional to get a quote and discuss your specific needs.

Where Should I Get Small Business Insurance

We recommend working with a licensed insurance agent to help find the right coverage for your small business.  At, we’ve developed reviews to help point you in the direction of insurance providers that can help. 

Check out our recommended small business insurance providers today!


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