What is liability insurance and does your small business need it?
What does liability insurance protect your small business against?
Here's what liability insurance covers and why how it could protect you from expensive lawsuits.
If someone were to injure themselves on your business' premise you can count on a lawsuit coming. If you don't have liability insurance to protect you, you may be on the hook for a lot of money.
With liability insurance, you're protected against personal injury claims that occur on your property. A general policy will cover the damages that occurred due to an individual being injured at your business. You can have specific policies that can further protect you such as a vehicle liability policy, but for most businesses a general liability policy will suffice. The only exception would be if your business sells products that could potentially harm the public. In that case, consider product liability insurance to protect you from lawsuits that claim your product caused a person injuries.
If a small business did not have liability insurance and lost a personal injury lawsuit, the expenses could shut down the business. Personal injury victims can be awarded millions if the injury is traumatic. Additionally, it isn't just the compensation that is expensive, it's also a matter of attorney fees and the time it takes to speak to an attorney and attend court. This time takes away time from the business and with small businesses that can be deadly.
How do you find the right insurance for your business?
Try consulting with a knowledgeable broker who can help you find the right plan for you type of business. Look for a broker who has helped client's with businesses similar to yours. There is most likely a policy that fits your business perfectly if you search for it and you conduct due diligence. Ask similar businesses for referrals.
Look into an LLC for additional protection if that suits your business structure.
If you'd like additional information, send us a message.