Can you get business insurance without a business license?
Can you get business insurance without a business license?
If you’re starting or acquiring a small business for the first time, congratulations! Business ownership can be fun and rewarding. You probably have a long to-do list, and one thing that should definitely be on there is a note to look into financial protection for your company. As you do, you might wonder, “Can you get business insurance without a business license?” Or if you know that you need general liability coverage specifically, you might ask, “Can I get general liability insurance without a business license?”
The short answer is you'll need to be licensed before getting business insurance for activities that require licensing. This article provides details on business licenses and insurance. Read on to learn more.
What is a business license?
A business license is a permit issued by a government entity that allows a person or company to do business in a specific jurisdiction. Licensing requirements vary based on location, the type of company, and other factors. Consequently, it’s essential to research federal, state, and local licensing requirements for businesses like yours.
As a business insurance company, biBerk doesn’t play a role in business licensing, and we can’t advise you on your licensing requirements. However, what we can tell you is that virtually all businesses need insurance of one type or another. We can also tell you that business insurance is affordable and easy to get! More on that below.
Why do I need business insurance?
Every company faces risks, from property damage and employee injuries to third-party lawsuits and cyberattacks. Business insurance helps companies deal with the financial fallout from unexpected incidents. If you don’t have adequate coverage, the costs have to come from your business revenues or savings.
What many business owners learn is that even what seems to be a minor incident can result in a major expense. Here are a few examples of the types of issues that can arise and hurt the finances of an uninsured or underinsured business:
- A customer at your store trips over a tear in the carpet, damaging ligaments in their knee. They sue your business for $125,000 to cover the cost of their medical care and lost income while they recuperate.
- A fire breaks out overnight in your office, destroying more than $100,000 worth of furniture and office equipment.
- An employee driving your company van is responsible for a collision for vehicle damage and injuries to the other driver. That person sues for $75,000.
- In your work as a consultant, you provide incorrect advice to a client. As a result, their business suffers financial harm, and they sue you for $200,000.
- An employee at your restaurant falls while carrying a knife and suffers a deep laceration in their leg, requiring several stitches. They file a workers’ compensation claim of nearly $20,000 for their trip to the urgent care and follow-up treatment.
These are just a few examples of costly incidents that could occur at any time. The point is that whether your business can get insurance without a license or not, you need financial protection.
How do I get business insurance, and what does it cost?
Business owners who purchase insurance from biBerk appreciate that we’ve streamlined the process. You can get quotes for business insurance policies on our website whenever it’s convenient—early in the morning, while you break for lunch, in the evening from your couch, or whenever you like. You simply provide some information about your business, and we generate a quote for coverage. It’s that easy!
The cost of a policy is based on several factors, including the type and size of your business, your claims history, and others. However, you’ll be happy to learn that small businesses often get hundreds of thousands of dollars in coverage for as low as a few hundred dollars a year.
One of the reasons we can insure companies so affordably goes back to our web-based approach to business insurance. We sell coverage directly to you, without any intermediaries taking a cut. Consequently, we can provide policies at up to 20% less than many other providers.
If our quote meets your budget and you decide to buy a policy, you can also do that online. Purchases are equally fast and efficient, and coverage is typically active the next day.
What types of insurance do I need?
Your insurance needs—like your insurance costs—are specific to your business. However, most companies need one or more of the seven essential coverages we offer:
- Workers’ compensation insurance to protect employees from the costs of on-the-job injuries
- General liability insurance to cover the costs associated with certain types of lawsuits against your business, including customer property damage, third-party bodily injury, and others
- A business owners policy (BOP) (sometimes called property & liability insurance) that conveniently combines general liability coverage with protection for business property
- Professional liability (or errors and omissions) insurance for when a client sues over claims that your professional advice or service caused them financial harm
- Commercial auto insurance to pay for damage to your vehicles and cover costs from third-party lawsuits
- Cyber insurance to pay for specified costs related to unlawful computer system access and theft of sensitive information
- Umbrella insurance that provides an extra layer of financial protection on top of an underlying liability policy
There’s helpful information on our website about each policy type, but our licensed insurance experts are always happy to answer your questions.
Get licensed if necessary and then get insured!
Can you get business insurance without a business license? Now you know that if businesses like yours are required to be licensed, you’ll need that license before you can purchase insurance. So, a good approach is to contact the appropriate authorities about your licensing requirements first and then buy the business insurance policies you need as soon as you can.
Any time you spend without coverage puts your business at risk of financial disaster. However, once you obtain insurance, you can sleep better at night knowing biBerk has your back.