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Three reasons you need to buy commercial insurance

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Alex Dopazo

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There are so many reasons that commercial insurance is important.  Today I give you my top three and you might find some of the answers surprising.

Licensing and Permits

Number 3 is when you are required to carry the coverage for a license, permit or certification.  Many times your local municipality, state licensing board or certification organization requires that you some kind of coverage to keep your status active.  Before you start looking for coverage make sure you’ve reached out and confirmed what the requirements are to make sure that anything you purchase will satisfy the requirements.

Contractual Requirements

Number 2 is probably the most complex reason. Contracts often have indemnification (fancy word for reimbursement) or insurance requirements that need to be satisfied in order to get that lease, project, manufacturing bid, or sales contract.  Contracts can say pretty much anything, so BEFORE you sign that contract make sure that you send a copy of the indemnification and insurance portions to your agent to make sure that your current coverage satisfies the requirement.  It is important that you review this BEFORE you sign because in our experience it is hard to get waivers after the fact and you may end up having additional insurance expenses that will affect your profit from the work.

Asset Protection

The number 1 reason to carry the coverage is the most overlooked reason, asset protection.

If you’ve been in business for 40 years or 1 year or your business has hundreds of thousands or just hundreds in assets, you have put a lot of time, energy and effort in to your business.  That effort is worth protecting.  Coverage to protect your business from financial loss is less than you think.  Protecting your business with insurance can ensure that even if your involved in a frivolous law suit or your lose your property in a catastrophe, you can stay in business and your time, energy and effort are not lost.  Insurance is the best way to make sure that you don’t have to start back from zero.

Never Alone

Remember that you don’t have to do this alone, call your agent.  If you don’t have one or would like a second opinion, look under our logo on the top left to call, quote or text us today.

About Blog Author


Alex Dopazo

In 1998, Alex Dopazo, joined his father at the agency and fell in love with insurance. It sounds corny, yes, but we love insurance and how it can help our customers. Together we share that love with all of our customers who eventually become friends.

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