Running a business, whether small or large, brings with it numerous risks and potential liabilities. To protect yourself and your business in the event of an unforeseen accident or incident, small business liability insurance is highly recommended. In this article, we will discuss what small business liability insurance is, why it’s important, and if you need it for your particular business.
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What Does General Liability Insurance Cost?
BIRK general liability insurance policies start at $275 per year with a down payment as low as $28. The best way to find out your particular general liability insurance price is to use an online quote. That practical tool takes many variables of your business into account: industry, company size, location, history, and more.
As you’re considering your general liability insurance plan, it’s also helpful to think about the value of a quality policy. Unfortunately, one of the negative effects of high-quality liability insurance is the significant cost that is involved. The right policy, however, can save you an enormous sum of money in the event of a major lawsuit.
Why Should I Get Coverage From a Liability Insurance Company?
Liability insurance is a type of insurance coverage that protects businesses from claims brought against them for property damage, injury, or financial losses incurred due to negligence. Business owners are often unsure if they need small business liability insurance, and the answer depends on their individual circumstances.
For those who think they don’t need coverage, it’s important to consider the potential risks associated with not having adequate protection in place. Without this type of policy in place, businesses can be exposed to costly legal fees and settlements related to any accidents or injuries that occur on their premises or as a result of their products and services. In addition, many customers will only do business with companies that have liability insurance coverage; so having this type of policy could provide an advantage when competing with other businesses in the same industry.
As the Small Business Administration points out, obtaining adequate protection for a company from the liability insurance business safeguards its finances against accidents, natural disasters, and legal judgments that could cost a business its money. In particular, you should seriously consider launching small business liability insurance if:
- You use or have access to a customer’s property. Damage to that property at a job site or at your location is covered by general liability insurance.
- You are required by a client to have coverage. In some cases, you must have liability insurance in order to bid on a job or receive a contract.
- You sell a physical item to customers. Lawsuits regarding product defects can be costly, and insurance can cover these costs.
- You conduct business face to face. If someone gets hurt and needs medical attention at a meeting at your business or your customer s, liability insurance can help cover the cost of treatment.
- You promote your products or services easily. It s easy to accidentally violate phrasing that’s covered by another firm s copyright or trademark. If you do, you could face a lawsuit, and liability insurance can function as a defense warranty.
- You want to sell an article of tangible worth to your customers. Product liability cases can be pricey, and insurance can help cover those expenses.
- You operate your business remotely, even non-virtual businesses encounter risks like those noted above (product liability, slander, libel, etc.), so you should ensure adequate financial protection.
What Kinds of Businesses Need General Liability Insurance?
The list of industries and types of businesses that need general liability insurance is long. Some of the many include:
- Health care businesses
- Janitorial services
- Food service companies
- Retail stores
- Marketing firms
- Vehicle repair shops
- Construction companies
If you’re considering getting small business liability insurance for your company, the answer is most likely yes. And our insurance agents are always happy to provide guidance so you can make an educated decision.
4 Things Small Business General Liability Insurance Does Not Cover
Small business liability insurance helps protect a lot of the challenges a small company faces. However, it does t cover everything, as some of it is covered by other forms of insurance policy. These are a few examples of things it d not cover: it commonly falls under commercial property and workers’ compensation insurance.
- Employee injuries. If an employee sustains an injury or gets sick on duty, workers’ compensation insurance may help pay for their medical costs.
- Professional services like providing expert advice. A professional liability policy (or errors and omissions) is used by professional advisers to offer expert guidance.
- Loss of sensitive information. Your loss of personally identifiable information that might result in fraud or a reasonable expectation that fraud may occur can be covered by cyber insurance.
- Accidents in business vehicles. Commercial vehicle insurance may provide coverage if you have vehicles that are used in work-related situations.
In conclusion,small business liability insurance is an important investment every business should consider. It can help provide protection from the financial risks that come with running a business and help protect your personal assets. Each business’s needs are unique, so it’s a good idea to speak to an insurance agent about which policy may be right for you. You can also do your own research to evaluate whether liability coverage is right for you.