What happens if I don’t have commercial insurance?

Running a business can be a big challenge. While some business owners may try to cut costs by not getting commercial insurance, not being properly covered could prove to be a big mistake. If you do not have commercial insurance, a number of negative repercussions could occur. 

Violation of State Law

One of the main things that could happen if you do not have commercial insurance in place is that you could violate state laws. The state likely will require that you provide your employees with workers compensation insurance. If you do not provide this coverage, you could face serious penalties from the state. 

No Coverage for Losses

If you do not have commercial insurance, you will also be putting your business in jeopardy. If you are sued or there is an accident that damages your business property, you will not have any coverage if you do not have commercial insurance in place. This could put your business in a poor financial position that can be difficult to recover from. 

Loan Violation

Finally, if you do not have commercial insurance for your Sandy, UT area business, you could be found in violation of your loan agreement. If you have any type of loan in place for your business, the lender will need you to carry commercial insurance. Having commercial insurance will help to ensure your solvency and protect the lender’s collateral. If you don’t have it, you could be in violation of your loan agreement. 

Since having commercial insurance for your Sandy, UT business is so important, you should speak with the team at Wasatch Preferred. The insurance professionals at Wasatch Preferred could provide you with assistance in picking the right commercial insurance policy. This will ensure that you are properly protected and fully in compliance.