If you are a business owner, it’s vital to have commercial insurance. This will protect your business in the event of an accident or lawsuit. However, what happens if you don’t have commercial insurance? This blog post will discuss the consequences of not having commercial insurance.
Heavy Fines and Jail Time
Not having the proper insurance might be against the law, depending on the business. For example, in Spartanburg, SC, all companies with two or more employees must have workers’ compensation insurance. If they don’t and an employee is injured on the job, not only can they be fined but also jailed.
Breaking a Lease
If you are leasing commercial space, your lease agreement will likely require you to have certain types of insurance. For example, your landlord may require you to have liability insurance in case someone is injured on the property.
If you don’t have the required insurance and something happens, you could be held responsible and sued. Your landlord could terminate your lease agreement if you don’t have the proper insurance.
Losing a License
Certain business licenses can be revoked if you don’t have the right insurance. For instance, food service businesses must have liability insurance that covers them if someone gets sick from eating their food. If you don’t have this coverage from a reputable agency such as Allsurance Group and someone does get sick, the health department could shut down your business.
Facing a Lawsuit
If someone is injured on your property or you are sued for some other reason, not having commercial insurance means you will have to pay for damages and legal fees out of your pocket. This can be financially devastating, especially for small businesses.
Missing Out on Contracts
Many businesses require their vendors and suppliers to have commercial insurance. If you don’t have the right coverage, you might be unable to do business with them. This could limit your customer base and revenue.
Why You Need Commercial Insurance
As you can see, many risks are associated with not having commercial insurance. The Allsurance Group can help you find the right coverage for your business. Contact us today to learn more. Spartanburg, SC businesses trust us to provide them with the best.