Something unexpected can always happen with any type of business, so it’s important that you have financial protection. Don’t think that just because you have a small company that you don’t need insurance. No matter what industry you are involved in, small business liability insurance is a must. It’s not uncommon for small businesses to face some sort of litigation for some reason, and the cost of not having insurance is typically a lot higher than the cost of purchasing coverage.
Some of the common things covered by liability insurance include lawsuits, settlements, investigations, professional liability, and medical expenses / attorney fees for anything your business is found legally responsible for. Some things that might not be protected with general liability include employee injuries, intentional acts, and auto-related coverage.
There are also industry-specific things your company might need coverage for. For instance, you might need some sort of protection from copyright infringements lawsuits if you are involved in marketing or advertising. If you’re run a business that requires you or employees to drive around a lot, then you’ll need business car insurance. If you have employees, then some states require disability insurance or some type of workers compensation insurance.
Small business liability insurance and workers protection that covers physical injuries is especially important if your company does work where accidents are more likely to occur, such as manufacturing, landscaping, or construction.
Small Business Liability Insurance Costs
It really doesn’t have to cost a lot of money. There are companies and insurance agents who will help you obtain affordable coverage that is tailored for your type of business and size. It’s extremely important that you choose an insurer that has a solid record of settling claims in a timely and fair manner. The company should also have a history of high-customer satisfaction. You should always be able to get customer support and responsiveness whenever you need it – especially when and if you file a claim.
If you run a high-risk business, it’s ideal to seek out insurers that offer umbrella policies or excess insurance to increase your coverage limits to ensure that you will be covered whenever there is a claim against you that exceeds the amount of your general policy.
Once you have purchased insurance policies, always stay on top of your coverage to make sure it’s always up to date. Keep the type of insurance you have in mind whenever you have to make an important business decision.