Commercial insurance is a vital part of any business. It protects your company from liability and helps to ensure that you can continue operating in the event of an accident or disaster. However, what happens if you don’t have commercial insurance? This blog post will discuss the consequences of not having commercial insurance from a reputable company such as E.S.T.I.R. Inc.
One of the most significant consequences of not having commercial insurance is that you could lose a lot of money. If you are involved in an accident or your business is damaged, you’ll be responsible for paying for the repairs yourself. This can be extremely costly and may even put you out of business.
Going Out of Business
In some cases, the expenses associated with an accident or lawsuit can be so high that they force your company out of business. This is especially true for small businesses, which often don’t have the same financial resources as larger companies. Even if you survive the initial costs, an accident’s long-term effects can devastate your business.
If your business is sued, you could be liable for the damages. This means that your assets, such as your home or savings, could be at risk. In some cases, you may even be required to sell your assets to pay for the damages. This can significantly impact your life, both financially and emotionally.
Higher Insurance Rates
If you decide to purchase commercial insurance after an accident or lawsuit, you can expect your rates to be much higher than they would have if you had purchased insurance beforehand. This is because you’ll now be considered a high-risk customer by most Bloomfield, NJ companies.
Fines and Jail Time
In some states, not having commercial insurance is a crime. This means you could be fined or even jailed for operating your business without the proper coverage. While the penalties vary from state to state, they can be severe.
As you can see, not having commercial insurance can seriously harm your business. If you are operating without insurance, we strongly recommend that you contact a Bloomfield, NJ insurance agent to discuss your options. At E.S.T.I.R. Inc., we can help you find the right coverage for your business. Contact us today to learn more.