It’s no secret that when owning and operating a small business, you run the risk of lawsuits. Because of this, you want to make sure you protect both your company and its assets. Both large and small companies face similar risks. However, a small business does not have the financial resources to fall back on that a large corporation does. Small business liability insurance is one way to protect yourself against financial damage.
This type of coverage is so critical, that over 90% of small businesses view it as a worthwhile investment, even if their cash flow is low. Let’s look at what general liability insurance is, what types of coverage it provides, and why a small business owner needs it.
What is Small Business Liability Insurance?
Small Business Liability Insurance protects a small business owner from claims of property damage, bodily injury, or business-related negligence. This type of insurance also guards company employees and various business assets up to the limits of the policy. If an individual or another company files a claim against you, your general liability insurance is going to help with lawyer fees, insurance investigation costs, settlements and other court-related judgments.
Why Does a Small Business Owner Need General Liability Insurance?
It would behoove every small business to look into general liability insurance. Even if your business is not considered high-risk, you could face bankruptcy if someone files a claim against your company. Liability insurance will help keep your business operational in the case of a costly lawsuit. Many clients require small business owners to show proof of general liability insurance before doing business or signing a contract.
What Types of Liability Insurance Do Small Businesses Need?
Based on information from the U.S. Small Business Administration, the type of general liability insurance required by a small business will depend on the kind of small business the owner has. For example, someone operating a construction or building contractor business will likely need more coverage than a web design or content consultant. Where the small business operates is another factor given consideration when determining what type of general liability insurance is needed. For small businesses that fall into a low-risk category, you may want to consider purchasing a policy that combines property insurance with general liability insurance.
Selecting a Licensed Insurance Broker
Small businesses need general liability insurance coverage to protect their assets and cover their employees. Small firms looking for health insurance plans may need the assistance of a reliable licensed insurance broker. Selecting Post Insurance means a small business owner will have access to a variety of premiums and plans.
For more information or a free quote regarding your small business and general liability insurance needs, call us today at (800) 262-9998 or connect with us online.