As a business owner, you do all you can to protect your employees, partners and customers. Since you likely come into contact with many different people during an average workday, there is a good chance one of these people could become injured in some way and place a claim against your business.
If you are covered through small business general liability insurance, your policy will cover your liability for the injured party. If you are operating without insurance coverage, you could end up paying for all of the damages out of your own pocket. In worst case scenarios, this could lead to major losses in your business.
Why Should You Purchase Business Liability Coverage?
Purchasing general liability coverage helps to reduce the risks involved in operating any type of business. When running your business, you or your employees could easily make a mistake that causes someone to become injured. Depending on your business type, you could cause damage to property. This type of coverage is not only for physical damages. It also covers you for privacy breaches and reputation damages. If your company accidentally exposes private information or causes damages in any way, you could be held liable. This could lead to court cases and long, drawn-out legal battles.
Without a general liability policy, your business could easily become bankrupt. While the price for commercial liability insurance policies can vary, this is a coverage you do not need to neglect purchasing.
Without coverage, you are taking unnecessary risks each time you open your doors for business.
What Types of Liability Coverage are Available?
- While a small business general liability insurance policy will not cover every area of liability, it can cover you in many ways. It can protect you from being held liable for loss payments that occur because of negligence. This coverage will protect you from loss because of bodily injury, medical expenses, libel, slander, property damage, the cost of defending any lawsuits and settling bonds or judgments brought against your company.
- Product liability coverage is also something your company should consider. If you are a manufacturer, retailer, distributor or wholesaler, you could be held liable for claims brought against you because of your products. This can protect your company from suffering from a loss due to one of your products causing bodily injury or damages. The amount of coverage you decide to purchase should depend on the products your company offers and the potential risk they may cause.
- Professional liability insurance is also known as errors and omission insurance. This coverage protects your business from liability resulting from negligence in providing services to your customers and partners. In some states, certain professions are required to carry this insurance. Doctors, lawyers and other professionals must maintain this coverage to be able to offer their services.
Should Small Businesses Purchase Liability Coverage?
Small business owners need small business liability coverage. In fact, small business owners are even more vulnerable to devastating losses. Since your business is smaller than bigger corporations, there are less assets to work with. Should fire, theft, accidents, damages or lawsuits occur, you could end up losing all of your business assets. In some cases, this could even result in you losing your personal assets as well. If you have a small business, it is a good idea to work with an insurance carrier that caters to small business owners so you can be sure you are getting the full liability coverage you need.
What Is Covered Under Business Liability Coverage?
- A liability policy will cover you for the costs of defending your business in a lawsuit. It also covers investigation, court costs, attorney’s fees, witness fees and any police report costs.
- It covers any expenses you may incur when being asked to testify for the insurance company.
- In the event you lose a liability lawsuit, the policy will cover you for any judgments or settlements you are charged with, including medical payments and interest.
- Liability policies also provide you with coverage for premiums paid on any court-ordered bond that may be a part of your liability case.
Who Is Covered Under Your Liability Policy?
- Your partners
- Any officers, directors or shareholders working on behalf of your company
- Subsidiaries that you own at least 50%
- Vendors under written contract
What Is Not Covered Under Your Liability Policy?
- Generally speaking, most employee injuries are not covered under this type of policy. You will need to make sure you have worker’s compensation coverage for these types of injuries.
- Auto liability is excluded, since each vehicle is required to be covered under an insurance policy.
- Damage to your property is not covered under a general liability policy. You are covered under your property insurance.
- Depending on your policy, there may be other areas your policy does not cover.
Helpful Tips for Purchasing Coverage for Your Company
To ensure you get the small business general liability insurance you need, it is a good idea to work with an insurance agent who understands your type of business. A specialized agent with Davis Insurance & Associates, can assist you through every aspect of your purchase and will help you to get the very best rates.
Before purchasing any policy and signing your contract, make sure you are fully aware of all of the coverage areas and exclusions your policy states. If there are any areas you have questions about, make sure you ask for clarification. By fully understanding your policy, you will be able to protect your business at all times.
Why not take a few minutes and request your free small business insurance quote. Give us a call toll-free at (800) 328-4711 or apply online at http://davisia.com/business-insurance/.