Businesses in Pennsylvania are required to carry certain types of insurance. However, even if it’s not legally required, you can still have consequences to deal with if you don’t have appropriate coverage and something happens.
Workers’ Compensation
Companies with at least one employee are legally required to carry workers’ compensation. Businesses that don’t have coverage can face a daily fine of $2,500 or one year of imprisonment. It’s typically a misdemeanor. However, if they find out you did it intentionally, it you can be charged with a felony and face up to seven years in prison.
You’ll also be responsible for any financial costs incurred by injured employees. That means you have to pay them lost wages or for their medical treatment because you don’t have workers’ compensation to foot the bill.
Businesses without commercial insurance in Pennsylvania can be ordered to close up shop until they obtain proper coverage. Valor Insurance can help you get the coverage you need to stay open.
Liability Insurance
Many businesses are also required to have liability coverage. Malpractice insurance is included for individuals in certain professions, such as those working in the medical field. PA law mandates liability coverage, and they can shut down your business if they find out you don’t have it. You can also become financially responsible for settlements against you.
Auto Insurance
If you’re caught driving without proper coverage, you can wind up with a suspended license, fines, or your vehicle impounded. This includes not having a commercial policy if you’re required to have one, even if you have a standard policy.
Agents here at Valor Insurance can help you learn more. We can make sure you have the coverage you need to meet Pennsylvania legal requirements. Contact us today.