When you started your business, you probably had a lot of things on your mind and insurance may not have been at the top of the list. Business insurance can be purchased in different forms and packages, but according to the U.S. Small Business Administration, getting insurance is a wise investment. Let’s take a look at some ways you can have a better understanding of business insurance and the liabilities you face.
Why Your Business Needs Liability Insurance
We live in a society where people will file a lawsuit at the drop of a hat. The premium required to obtain business liability insurance will most definitely be much less than the thousands, or possibly millions, of dollars you may one day need in defending your business in a court of law. The crazy thing about some of these lawsuits is that they can be filed for things your company did or didn’t do. Your liability insurance needs will depend largely on the degree of your interaction with other businesses and the general public. Just because your friend has $100,000 of liability coverage, doesn’t mean that this amount is right for you.
Ways You Can Buy Business Liability Insurance
General liability insurance can be purchased as a stand-alone insurance policy or it can be included in a Business Owner’s Policy (BOP). Depending on your situation, a BOP may fit your insurance needs. It combines property and liability insurance coverage in one policy and can normally be purchased for a lower premium that buying separate policies. The drawback is that the liability coverage can be limited to less than what you actually need. If you currently own a BOP, make sure you understand the extent of liability coverage in your policy.
How Should You Choose A Business Insurance Agent
Providing adequate insurance coverage to protect the assets of your small business from the liability risks you face just might be the foundation of your success. Sometimes simply taking the “best deal” approach won’t give you what you need. You should discuss your business insurance needs with an agent who is not only experienced in the business insurance market, but one who also understands your business. Together you can tailor an insurance program to not only meet your needs, but one that will allow you to sleep better at night knowing that if a claim comes, you’re covered.
General liability insurance protects your assets from claims that can arise due to someone getting hurt on your property or when you or one of your employees causes damage to other peoples property. These claims may require the payment of legal defense and settlement costs. The amount of coverage needed will depend on your type of business and the perceived risk associated with your business. It is very important that you review your needs with a professional before rushing out and buying a policy.
Please feel free to contact us to see the Strategic difference. We look forward to serving your insurance needs.