Can You Get Liability Insurance Without a Business License

One of the most important things you can do to protect your business is purchase liability insurance as a gym owner. Liability insurance protects the property, owner, client, and employee level. However, most insurance companies will want to see a copy of your business license before purchasing liability insurance at the customer level.

What is a Business License?

Whether you have a gym in the city limits or the county, you must apply for and be approved for a business license through the local government. This license is a legal registration of your business and the services that you provide. This registration allows you to operate and provide your services in your community. Attempting to operate a business without a license subject you to local fines and reprimands for not properly licensing your business.

Most cities and county websites have the application available online with any fees that may be required. There are some jurisdictions in a few places that may require you to register at the federal or state level, as well. When your county or city inspector visits your business, they will determine if the license you have is sufficient or if additional ones are required.

Once your requested business license has been approved, you will be provided a business ID number and be compliant with your local government laws. With this business license, you are entitled to any protections offered by the local government in which you are registered. You are also eligible to move forward with business operations, including pursuing liability insurance for your facility.

What do I Need a Business License For?

First and foremost, your business license gives you the ability to open up your gym and offer your services to your clientele. Without a business license, you are operating illegally and are subject to several violations, fines, and other consequences.

Obtaining Commercial Insurance

Your business license is critical to have and be approved when you purchase commercial insurance for your business. Before you can get the basics of general liability workers' compensation or any other protection, your insurance agent will need a copy of your business license. This tells them what type of business you have and helps identify which insurance coverages you need versus what you may want.

Identifying Tax Breaks

Being able to track revenue and manage local and income taxes is essential as a business owner. When you carry a business license, you can file your taxes properly and even take advantage of business tax breaks. Without a business license, you cannot access certain tax breaks and credits at the business level.

Local Accountability

When you obtain your business license, you become an accountable business owner in your area. Your gym agrees to local ordinances based on the jurisdiction where you are operating. You also have access to protections by local ordinances. Your business is not protected without a business license and could leave you liable for damages for property or bodily injury.