Does Your Small Business Need Liability Insurance?

While opening a business can hold great promise for increasing profits, investors, business owners, and operators still need to be mindful of the risks presented by owning a business. Liability insurance provides coverage for a wide range of a company’s daily operations. It can provide coverage in the event of property damage, lawsuits, employee injuries, and claims of slander or misrepresentation.

The Advantages of Business Liability Insurance

When you invest in business liability insurance, you no longer have to worry about paying thousands of dollars out of your own pocket for a lawsuit or other unfortunate circumstance. Your liability insurance policy will clearly articulate the circumstances that are covered by the policy. By having a liability insurance policy, your business will be able to deal with unfortunate situations without losing its profitability. In addition, holding a business liability insurance policy may mean that you are in compliance with your state’s regulations. States like New York and Wisconsin require that business owners carry a minimum amount of business liability insurance.

Avoiding Bankruptcy

There are many circumstances that a business owner can simply never anticipate in the course of running a business. Some of these circumstances may include the outbreak of a fire or the permanent disability of an employee due to an on-site injury. These types of situations can be draining on the funds of a business or even lead to bankruptcy.

Protection from Lawsuits

A business can be impacted by a wide range of lawsuits. A disgruntled employee may wish to file a wrongful termination lawsuit against the company, or a customer injured on the premises may wish to file a personal injury lawsuit against the business. An experienced personal injury attorney says those who own and operate a business need to be prepared for these possibilities. A business liability insurance policy may provide coverage for the ultimate damages awarded in a case, as well as the associated legal fees. The insurance company is also required to defend a business from claims that are brought against it. Protecting your business is critical to success. General liability insurance is a must-have when you regularly interface with customers or have a staff of employees. Your business should have a plan to deal with the ongoing risks that it regularly faces in its daily operations. A general liability insurance policy can make up the most significant part of this plan for protecting your business from these risks.