Insurance Required by the Commonwealth of Pennsylvania
Having insurance is like having a financial safety net that helps individuals and their families financially recover after different types of incidents occur. In certain instances, others are affected by our actions. Whether you are in a car accident or something occurs within your business or home, others can be affected. Because of this, the State of Pennsylvania requires specific insurance coverage for different scenarios.
Understanding Insurance Is A Contract
Insurance comes in all different types as a solution to many different problems. At its core, insurance is a written contract between an individual or business entity (the ‘insured’) and an insurance company (the ‘insurer’). Given the insured meets their payments and the accident at hand is covered under their existing policy, the insurer will take over the responsibility of paying for the losses or damages incurred by the insured as a result of the accident or incident.
Which Types Of Insurance Are Required By The PA Government
With so many types of insurance available, which types of policies are required to be held by Pennsylvania residents?
1. Required Auto Insurance In Pennsylvania
In order to legally drive, drivers must purchase and maintain auto insurance in Pennsylvania. This is often referred to as “maintaining financial responsibility” on vehicles. PA drivers are required to maintain auto liability insurance in the following amounts:
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$5,000 for property damage to another individual’s property
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$15,000 for injury or death of one person in a car accident
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$30,000 for injury or death of more than one person in a car accident
There are many other types of auto insurance policies on the market that can protect you further. The above types and corresponding amounts are the minimum required by Pennsylvania law.
2. Required Health Insurance In Pennsylvania
As of 2019, the federal government no longer requires that an individual hold health insurance. However, some states have individual mandates that require residents to maintain healthcare coverage, many of which come with tax penalties for those who do not abide. Pennsylvania does not require residents to have health insurance coverage, but it is highly advisable to have a basic health insurance plan.
3. Requirements For Homeowner’s Insurance In PA
In Pennsylvania, homeowners are not required to have homeowner’s insurance. However, most banks and mortgage lenders will require borrowers to have coverage for at least the value of the home. This type of insurance protects the home and personal property from fire, weather events, theft, and vandalism. Depending on your plan, homeowner’s insurance could also include personal liability protection, which provides financial protection to you and your family if a third party is injured on your property.
4. Required Insurance for Pennsylvania Businesses
It is required by law that all businesses have Worker’s Compensation Insurance. This insurance ensures that employees who experience a work-related injury or illness are able to have access to medical care, rehabilitation services, medication, and lost wages. With Worker’s Compensation Insurance, the insurance carrier will cover these items, so the employer doesn’t have extra out-of-pocket costs when an employee is injured or ill as a result of their work.
Commercial Auto Insurance Requirements In PA
If a business has company vehicles, they are also required to purchase and maintain commercial auto insurance in PA. Similar to personal car insurance, commercial auto insurance grants financial coverage to the insured in the event of an accident, covering property damage and medical expenses for injuries incurred as a result of the accident. It is important to note that the majority of personal car insurance policies do not cover vehicles that are used for business purposes, so it is essential to insure commercial vehicles with commercial policies.
We Recommend Liability Insurance For PA Businesses
Although Pennsylvania law does not require businesses to have general liability insurance, it is highly recommended that they do. General liability insurance protects business owners from various claims, such as property damage, bodily injury, personal injury (libel and slander), and advertising injury. Without general liability coverage, a business would be responsible for all out-of-pocket costs associated with the above claims.
Contact Strickler Insurance To Get Your Required Insurance In PA
At Strickler Insurance, located in Lebanon, PA, we can help you navigate Pennsylvania’s insurance requirements. Make sure your business is operating legally, your home is insured properly, and your car is legal to drive with the correct insurance coverage for your vehicle. Contact us at Strickler Insurance for your Pennsylvania insurance.
