What Happens If I Don’t Have Commercial Insurance for my Business?

Not having commercial insurance as mandated by Texas or any other state can result in significant monetary loss from fines and business if your company is forced to close for violations. Specific to Texas, unlike in the majority of states, businesses are not required to have workers’ compensation insurance, which helps pay for costly medical bills and other damages associated with an employee’s inability to work due to workplace injury or illness. Additionally, any Texas companies that have contracts with the government must have workers’ compensation insurance. Although workers’ compensation insurance is not required in Texas, any business-owned vehicles must be covered by commercial auto insurance with at least state minimums for liability coverage. Additionally, if you own a business where employees are required to use their personal vehicles for work purposes, then it is strongly recommended that cover those vehicles with hired and non-owned auto insurance because personal auto policies generally exclude business use. 

Choosing not to have commercial insurance can have a devastating impact on your livelihood by leaving your business and assets exposed. In addition, failure to carry commercial auto insurance as mandated by the state can result in costly fines and even a potential shutdown. Consequently, the vast majority of business owners turn to commercial insurance to help protect their companies. When choosing insurance, be sure to have adequate liability coverage. Depending on the type of business, it may be important to have supplemental coverage like cyber liability insurance if you are hacked or suffer a data breach. When you are ready to find the perfect policy, give Barry Insurance Group in Pearland, TX a call so we can help you customize a commercial insurance plan that best fits your business and needs.