5 Reasons Why You Need Business Liability Insurance Right Now
Dan Levenson July 01, 2015
Owning a business is an exciting and rewarding achievement. However, it also comes with its share of liabilities. While being sued as a business owner is relatively rare, every business is at risk. Not having adequate coverage for your business can leave you susceptible to a wide range of legal and financial issues, up to and including bankruptcy and the loss of your business.
Here are five reasons you need business insurance:
Once Is All It Takes
The only thing that stands between your business running smoothly for years and it coming under fire of a lawsuit is one unfortunate event. Whether it’s an employee who gets angry because you had to let them go, a customer who slips and falls on your floor resulting in costly medical expenses, or a single omission in a business contract, it only takes a single event to cause serious damage to your legal and financial wellbeing. Various forms of business liability insurance can help you protect your business.
Life Is Unpredictable
Even though you take every measure possible to protect your business, your employees, and your customers, life is unpredictable, and things happen that you’d never expect. Being prepared for the unexpected with business liability insurance can help you operate your business with peace of mind instead of walking on eggshells hoping nothing happens.
Corporate Shields Aren’t Bulletproof
Many business owners fall into the trap of believing that their personal and business assets are safe and covered because they’re using a “corporate shield” type of policy. Unfortunately, the protection of a corporate shield only goes so far, and it doesn’t protect your business against every type of judgment a court could issue against you. Not only could you lose your business, but you could lose your personal assets as well. Losing everything you own is not a risk you need to take; business liability insurance can help you stay protected.
No Policy Is Comprehensive
You might think that because you have general liability insurance, you’re covered for any issue that might arise. However, that coverage doesn’t help you if your employees are injured at work. Home-based business owners often believe that their homeowners insurance covers their business affairs, too, but it doesn’t. Likewise, property damage costs aren’t always included in policies like commercial liability. No matter what policy you have, it’s unlikely that a single business policy will cover everything you need to protect. Multi-policy business insurance coverage can help you protect your business, employees, and customers at every level.
Plans Can Be Customized To Your Needs
If you’re looking into business insurance, you might be wondering where to start. There are many types of business insurance available, and each of them serves a purpose. However, the basic types of insurance every business owner should usually have include a business owner’s policy (general liability), workers compensation, errors and omissions (E&O), and something to cover your personal assets in the case of a lawsuit. While you’ll only be able to determine the best combination of policies by soliciting advice from an insurance professional who can look at your unique circumstances, these are the standard policies that most businesses need.
Regardless of the combination of policies you choose, you want to make sure that your business assets, your employees, your customers, and your personal assets are covered. You also want protection from mistakes made on paper so that you won’t lose money or assets over a small mistake on a contract. A small investment in business coverage today can mean avoiding costly lawsuits later.