So, you let your insurance lapse. Or, you might be a few days from an auto-renewal and scrambling for different coverages. Maybe you don’t know what types of coverage you may need – we can help with that
. For many small business owners, their company is their primary source of income. You work hard every day to not only keep the doors open, but to thrive. Don’t let a lapse in insurance hurt your business.
Tim Logan, Director of Product for AmVenture Insurance Agency, Inc.
provides some insight in to what can happen if you let your insurance lapse. Three things can occur if you don’t have insurance coverage for your small business:
- You could be in violation of terms of financing. In many cases, financial institutions require small businesses be insured. Don’t compromise your finances with a lapse in insurance.
- You could be in violation of state workers’ compensation statutes and possibly subjected to fines or imprisonment. Some states require businesses provide workers’ comp insurance, so make sure you’re in compliance with the U.S. Department of Labor.
- You could be responsible to pay 100% of damages arising from a loss. If a customer were to slip and fall, a fire burned down your office, or one of your commercial vans were totaled in an accident, you’ll need to come up with the cash to recoup everything. Not to mention the loss of business while you’re getting back on your feet.
These are just three main scenarios that can happen in the event of a lapse in your policy. Another “bonus” of not having insurance is bad publicity, like this case
out of Oklahoma. The cost of a policy pales in comparison to a multi-million-dollar payout, not to mention your company all over the news.
Need workers’ compensation, disability
or both? Let our guide
AmVenture Insurance Agency, Inc. is all about helping small business stay in business. Let us help ensure your success. Get started
AmVenture Insurance Agency, Inc. (“AmVenture”) is a licensed insurance producer affiliate of AmTrust Financial Services, Inc. This material is for informational purposes only and is not legal or business advice. Neither AmVenture nor any of its subsidiaries or affiliates represents or warrants that the information contained herein is appropriate or suitable for any specific business or legal purpose. Readers seeking resolution of specific questions should consult their business and/or legal advisors. Individual coverage may vary and may not be available in all states. In the event of a conflict with the material herein, the terms and conditions of any issued policy will control. Any claim examples are general, may or may not be based on actual claims, and are for illustrative purposes only. Any available coverage for a claim will be determined based on the facts and circumstances of the claim as well as the terms and conditions of the policy, including any applicable exclusions or deductibles.