Are You Required to Carry Commercial Insurance?

If you own a business, you may have heard conflicting information about commercial insurance, also commonly called business insurance. At Insurance & Financial Services Inc. serving the greater Baton Rouge, LA area, we want to take the time to clear up some of this confusion. One of the questions we often hear is whether a business is required to carry commercial insurance. Here are the three times you are required to carry this type of insurance. If you do not meet these criteria, you are not legally required to carry it, though it is strongly advised you do.

You Own a Commercial Building that is Not Paid Off

If you own a commercial building, odds are, you are required to obtain and carry commercial insurance as part of your loan agreement. This instance is just like a home mortgage lender requiring you to pay for home insurance on a home you do not own outright.

You Use Vehicles As Part of Your Business

Regular auto insurance policies typically preclude you from using your personal cars for business. As such, you will need to obtain a commercial insurance policy to cover any cars you use for business.

The City or County Requires It

Some cities or counties require every business owner in their city or county to carry a commercial insurance policy to obtain a business license. If you live in one of these cities or counties, you must abide by the laws in those areas.

If you are looking to obtain a new commercial insurance policy in the Baton Rouge, LA area, give Insurance & Financial Services Inc. a call today for a free price quote or to discuss your commercial insurance needs.