Here's what most Oklahoma City business owners don't realize until it's too late: the insurance that protects your building from tornado damage won't cover a single dollar of the revenue you lose while you're closed for repairs. That's where business interruption coverage comes in—and in a city that's seen five of the ten costliest tornado cycles in U.S. history, it's not optional.
Whether you're running an oil and gas operation, managing an aerospace supplier, or opening a restaurant in Bricktown, understanding business insurance in Oklahoma City means understanding the unique risks of doing business in a state where severe weather is a fact of life and energy sector work comes with specialized liability exposures. Let's break down exactly what coverage you need, what you're legally required to carry, and how to protect your business without overpaying.
What Business Insurance Is Required in Oklahoma City?
Oklahoma keeps it simple: if you have employees, you need workers' compensation insurance. Period. This includes full-time and part-time workers, and there are very few exceptions—mainly LLC members who own at least 10% of the company can opt out. If you have even one employee who isn't an owner, you're required to carry this coverage.
The second legal requirement is commercial auto insurance for any vehicle your business owns. If your company name is on the title, it needs commercial coverage. Your personal auto policy won't cut it, and driving a business vehicle without proper insurance can expose you to massive liability.
Everything else—general liability, property insurance, professional liability—isn't mandated by state law. But here's the catch: your landlord probably requires general liability insurance in your commercial lease, and if you're working with any major clients or vendors, they'll likely require proof of insurance before signing a contract. So while technically optional, these coverages are practically mandatory for most businesses.
Insurance for Oklahoma City's Oil and Gas Industry
Oklahoma City processes nearly 523,000 barrels of oil per day, making it America's fourth-largest crude oil producer. If you're in the energy sector—whether you're an operator, service company, or field contractor—you need specialized insurance that goes way beyond standard business policies.
Standard oil and gas insurance packages typically include general liability, workers' compensation, pollution liability, and commercial auto. But the real value comes from specialized coverages like blowout and cratering protection, underground resources and equipment coverage, and inland marine insurance for mobile equipment. Pollution insurance is particularly critical—environmental cleanup from a spill or leak can cost millions, and standard general liability policies explicitly exclude pollution-related claims.
Workers' compensation is especially important in this high-risk industry. Falls are the number one cause of injuries and deaths across nearly every sector, but in oil and gas work, you're also dealing with heavy equipment, extreme temperatures, and exposure to hazardous materials. Your workers' comp policy needs to reflect these elevated risks, and you should expect higher premiums than office-based businesses.
Tornado Season and Business Interruption Coverage
Let's talk about the elephant in the room—or rather, the tornado on the horizon. The May 2013 tornadoes resulted in insurance claims between $2 billion and $3 billion, with over $1 billion paid out that year alone. Between 2018 and 2023, homeowners insurance rates surged 42% in Oklahoma, and businesses have seen similar increases.
Commercial property insurance covers physical damage to your building, equipment, and inventory when a tornado hits. But business interruption insurance—also called business income coverage—covers the revenue you lose while you're closed for repairs. If a tornado destroys your restaurant and it takes four months to rebuild, business interruption insurance pays the income you would have earned during those four months, based on your financial records.
Here's the critical detail most business owners miss: business interruption only kicks in if the property housing your business was directly hit. If your building is fine but your suppliers can't deliver because their facilities were damaged, standard business interruption won't cover your losses. You'd need contingent business interruption coverage for that scenario.
Oklahoma City businesses should expect to pay between $60 and $87 per month for commercial property insurance, though rates vary significantly based on your building's age, construction type, and location. Buildings in tornado-prone areas or those with older roofs will pay premium rates.
Coverage for the Aerospace Sector
Oklahoma City's aerospace industry directly or indirectly supports more than 67,600 workers and generates $8.2 billion in economic activity. If you're supplying parts, providing maintenance services, or operating in this sector, your insurance needs are as specialized as the work you do.
Workers' compensation is essential, and you should know what it actually covers. Repetitive stress injuries are the most common claims in aerospace manufacturing—doing the same assembly tasks every day puts extra wear on joints and tendons. Falls remain the leading cause of serious injuries and deaths. Your policy should provide medical benefits, vocational rehabilitation if an employee can't return to their previous role, and disability benefits that typically pay two-thirds of the injured worker's salary.
One important note for aerospace contractors: if you're working at Tinker Air Force Base or the Mike Monroney Aeronautical Center, standard Oklahoma workers' compensation might not apply. Civilian employees and contractors at federal facilities may need to seek coverage under the Federal Employee's Compensation Act or the Federal Tort Claims Act instead. Make sure you understand which system applies to your workers before assuming your state policy has you covered.
Professional liability insurance—also called errors and omissions coverage—is crucial if you're engineering, designing, or consulting in the aerospace sector. A single defective part or design error could result in catastrophic damage. This coverage protects you from claims alleging your professional services caused financial harm.
Essential Coverage for All Oklahoma City Businesses
Regardless of your industry, three core coverages form the foundation of business insurance: general liability, commercial property, and workers' compensation. General liability protects you from third-party claims—if a customer slips and falls in your store, if your work damages someone's property, or if you're accused of advertising injury. Oklahoma City small businesses typically pay between $25 and $85 per month for general liability coverage.
The smartest move for most small business owners is bundling general liability and commercial property into a Business Owner's Policy, or BOP. You get both coverages in one package, usually at a lower combined premium than buying them separately. A BOP often includes business interruption coverage automatically, which is exactly what you need in tornado country.
If you handle customer data—credit card numbers, social security numbers, health information—cyber liability insurance has gone from nice-to-have to essential. A data breach can cost hundreds of thousands in notification costs, credit monitoring, legal fees, and regulatory fines. Your general liability policy doesn't cover cyber events, so you need a separate policy.
How to Get the Right Coverage for Your Business
Start by identifying what's legally required—workers' comp if you have employees, commercial auto if you own vehicles. Then look at what your lease or contracts require, which is usually general liability. From there, assess your actual risks. Are you in tornado alley? You need solid property and business interruption coverage. Working in oil and gas? Add pollution liability and specialized energy coverages. Operating in aerospace? Professional liability becomes critical.
Get quotes from multiple carriers, because rates can vary dramatically. In Oklahoma, you have access to state-backed workers' compensation through CompSource Mutual as well as private insurers. For specialized industries like energy or aerospace, work with an agent who understands your sector—they'll know which carriers offer the specific endorsements and coverages you need.
Review your policies annually, especially as your revenue grows or you add new services. The coverage that made sense when you started might leave dangerous gaps three years later. Your insurance should grow with your business, protecting not just what you have today, but what you're building for tomorrow.
