I am implementing an internship program for high school students in central Florida.  the focus of the program is to expose/preview career options upon graduating from high school through continuing education.  hopefully the intern will have a better perspective of what they want before they get to college... in a nut shell.  one of the businesses I was recruiting explained they wouldn't take on an intern unless they were insured.  they didn't know the "why" or the "how", but said unless they (intern)were insured, no dice.  can anyone give me the rhyme & reasons for this, and what type of insurance is needed.  

Thanks in advance

You might consider bonding the intern which would protect the business against theft. It the business is in a technical field then you could offer for the interns to sign non disclosure agreements. Other than that, I suggest you go back to this business and ask them what insurance that are referring to and if they don't know then ask them of other business that require it and go to that business for the information.