Is commercial insurance a legal necessity?

Suppose that you’ve crunched the numbers and discovered that you’re fine without insurance for now. Your Shelton, CT business has very low overhead, and you can comfortably cover, out of pocket, any damages you suffer while doing business. So this leaves the question of whether you are legally required to attain commercial insurance.

This question comes down to a number of factors, but the short answer is: You might not.

Insurance becomes legally complicated when liability enters the picture. If you’re self-employed, then you’re technically a small business owner, but not every self-employed individual carries a policy with Goodman Insurance, Inc. There’s very little concern regarding liability when it comes to, say, website design or selling vintage clothing in an Etsy shop.

Liability comes into play in a number of instances, and for business owners, these will generally come down to:

  1. Inviting people (customers, clients, business partners) onto the business premises
  2. Selling products that may be potentially hazardous (workout equipment, car parts, etc.)
  3. Driving (delivery, and transportation)

You may have a personal policy in place that already covers the first or third item on the list. Your car insurance will cover you for trips to the bank on company time, for instance, but you may need to talk to someone at Goodman Insurance, Inc. about getting commercial coverage to protect your client’s cargo for delivery runs. In any event, a general rule of thumb is that commercial insurance will be up to the individual business owner when it comes to protecting your end of things, but legally prerequisite when it comes to putting others at risk. If your business isn’t already covered on these fronts, call Goodman Insurance, Inc. in Shelton, CT about a commercial policy.