As a business owner, you must stay aware of and follow many rules and regulations. This is no easy task for a small or start-up business. However, commercial insurance can help safeguard your business if you run into a legal issue.
Technological advancements and new societal priorities are changing the landscape for small businesses. In turn, business owners must focus more attention on legal matters and see that they have the right commercial insurance to protect their businesses.
Navigating these changes in the business environment can be a real challenge. To help, here are five of the top legal considerations for small business owners in 2025.
Top 5 Legal Considerations for 2025
Amid economic uncertainty, small business owners will face regulatory and workplace changes in 2025. An owner of a small or start-up business must comply with things like:
- Data privacy regulations
- Employment law updates
- Cybersecurity regulations
- Environmental and sustainability mandates
- Consumer protection laws
These rules and regulations come from both the federal and state levels, challenging businesses to maintain compliance. Companies that fail to comply could face fines and a loss of consumer trust, creating additional business challenges. Here is a closer look at five legal considerations for 2025.
Data Privacy
Concerns continue to swell over the personal data that businesses collect on consumers. Companies must be aware of Europe’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).
However, in 2025, other states, including the following, are implementing data privacy regulations to give consumers greater control over their personal data:
- Delaware
- Minnesota
- Nebraska
- New Hampshire
- Tennessee
These rights include the right to access, correct, and delete data. Consumers can even opt out of data sharing, potentially impacting marketing and requiring some companies to update policies and how they manage consent from consumers. To avoid penalties or a loss of consumer trust, small businesses must ensure they’re following the new rules.
Updates to Employment Laws
Many small businesses are already adjusting to remote work and the gig economy. Now, as a business owner, you must understand and comply with evolving employment laws on work classification, minimum wage, and overtime pay. Several states are implementing new rules on overtime pay and increases to the minimum wage.
At the federal level, companies must register with the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). This is required for them to comply with the Corporate Transparency Act.
The law requires certain companies to supply FinCEN with information on individuals with significant ownership or control of a business. The law is designed to prevent companies from being misused for money laundering and other crimes.
Cybersecurity Regulations
As the threat of cybersecurity breaches increases, small businesses will see a stronger emphasis on cybersecurity. This includes areas like:
- Data privacy
- Employee training
- Requirements for notification of breaches
- Security of connected devices
- Rules for specific industries
Businesses face mandatory training on cybersecurity awareness, including phishing detection, using secure passwords, and safe online behavior. You will also see stricter regulations for the timeline and information you must report if you have a data breach. New rules aim to safeguard healthcare and financial data as well.
Adding cyber liability or data backup insurance to your commercial insurance policy could be a good idea, too. It may protect your business against financial losses or damage to your reputation from a cyberattack or data breach.
Environmental and Sustainability Mandates
Your small or start-up business may face more stringent environmental and sustainability mandates. This could include:
- Stronger requirements to report carbon emissions
- Increased attention to sustainable practices
- Mandatory upgrades for energy efficiency
- Regulations on managing waste
These legal requirements will come on top of consumers demanding more sustainable products and practices. Small businesses may also see more emphasis on tracking and reporting environmental, social, and governance metrics and requirements to recycle, reuse, and remanufacture to reduce waste.
Consumer Protection Laws
As a small business owner, you may have to comply with new state regulations for data privacy depending on where your business operates or if you have an e-commerce business. However, there are other regulatory changes for consumer protection that may also impact small businesses in 2025.
New regulations under the Telephone Consumer Protection Act are expected to begin in 2025. They require stricter procedures for consumers to give consent for robocalls and texts. This could impact telemarketers and small businesses that use such practices to generate leads.
In 2025, you also may see federal agencies tightening rules around high-interest lending. The targets may be online lenders and financial technology (fintech) companies, which could affect the credit options small businesses can offer consumers.
Your industry may face unique challenges due to rule changes in 2025. You can consult with a professional to discuss legal changes in 2025 that might affect your business. You also can work with an independent insurance agent to find out whether these legal considerations require an update to your commercial insurance coverage.
Find Commercial Insurance With Garrett Insurance
As the owner of a small business or start-up business, you must keep up with a lot to run your company day in and day out. Changes in regulations can add to the complexities you face every day. Having the right commercial insurance for your company may help you stave off financial losses when issues arise.
At Garrett Insurance, we offer a comprehensive line of commercial and business insurance to safeguard your business. Give us a call today.