The Real Cost of Not Having Commercial Auto Insurance

Contractors and local businesses are essential to Mississippi’s economy. They work daily on job sites, build widgets, deliver flowers, and provide many other services. Many utilize cars, trucks, and vans in the regular course of doing business. Running a smooth and efficient company includes having commercial auto insurance to protect their business operations and avoid financial risks. Some business owners mistakenly skip insurance because they want to keep costs low. Not buying the right coverage may give you short-term savings but has long-term consequences.

4 Financial and Legal Risks of Not Having Commercial Auto Insurance

Having commercial auto insurance is the safety net your company and customers deserve to avoid these potential financial and legal risks:

1. The financial liability of accidents: Accidents happen and when they do, there are often significant expenses. Business owners tend to face higher costs than an individual driver. Without commercial auto insurance, your company can be saddled with the entire cost of damages to vehicles, property, or other persons involved in the accident. Being fully responsible financially could cripple your enterprise’s funds and disrupt your ability to operate effectively.
2. The financial impact of out-of-pocket expenses: Not only are you responsible for liability costs in an accident, but there are additional out-of-pocket expenses as well. For example, if one of your work trucks is damaged in an accident and you don’t have insurance, your company must cover the cost of the repairs. If it’s rendered entirely out of commission and you have to replace it, that could be financially devastating. Imagine how much downtime you suffer simply because a truck or van is off the roads.
3. The legal penalties for not having coverage: In most states, commercial auto insurance is legally required. Getting caught driving without it could result in fines, vehicle impoundment, or suspension of operating licenses. Additionally, you may be required to carry high-risk insurance after being caught without coverage, which is much more expensive.
4. The long-term impact: Continually paying out-of-pocket for accident damages or legal fees can quickly cut your profits and slow business growth. It can also limit your resources for hiring, equipment, or marketing. One uninsured incident could affect cash flow, delaying payments to employees, vendors, or other contractors.

Partner with Experienced Commercial Auto Insurance Brokers

Operating your business without commercial auto insurance isn’t a risk worth taking. It’s a significant financial gamble with long-term consequences—from unexpected accidents to hefty out-of-pocket costs. Talk with the team at Hawsey Insurance to get the best coverage at reasonable rates. We’ve served Mississippi businesses for decades and have the experience and know-how to help you get what you need. We work with you to support your commercial insurance needs, including general liability, business owners’ policies, umbrella insurance, and worker’s compensation policies.

Call Hawsey Insurance at 601-856-7707 to discuss your commercial auto insurance needs with a qualified insurance agent. Feel free to contact us online or make an appointment to stop by our Madison, Jackson, and Southaven, MS offices.