As a business owner, you want to make sure your assets are protected. You’ve worked hard to make your business materialize, you don’t want to watch it go back to seed in its first year. General liability insurance safeguards your company against work-related scenarios that could destroy your good reputation and bankrupt your business. With business insurance, that won’t happen.
Here is a list of reasons why you should take out a general liability insurance policy.
Why Should I Get General Liability Insurance?
As of 2010, the most current data available, there were a total of 28 million small businesses dotting the U.S. landscape. According to the Small Business Administration (SBA), 52 percent of those businesses were home-based. When you’re running a business out of your home, your homeowners insurance plan isn’t going to cover any of the financial damages to your home, personal effects or merchandise if an accident occurred as a direct result of your business dealings. General liability insurance will.
Reason 1: Covers Unforeseen Accidents
General liability insurance, also commonly referred to as commercial general business liability, supports your business when catastrophe strikes. If for example you or an employee are hurt on the job, your general liability coverage will pay for the medical costs.
Reason 2: Covers Unforeseen Legal Woes
Unfortunately, not everyone out there understands that accidents happen. For those that don’t understand, they need someone to blame. If a customer is injured on your property or by having used one of your products, there is a chance you and your business will be sued for damages. General liability insurance will pay for your legal fees (including for the defense, attorneys and compensation) if you are sued.
Reason 3: Protects Your Good Name
If you have one unhappy customer or employee, they may decide to air their grievances to the public, be it by mouth-to-mouth criticism or online. The SBA shares with us that general liability protection ensures that we are covered against claims of copyright infringement and from slanderous talk, including libel.
Reason 4: Covers Structural Damages
According to the National Fire Protection Association (NFPA) the average financial loss per structure as of 2015 in the U.S. was $19,500. If you are running your business in the home or renting a space and a fire erupts, causing a significant amount of damage, do you have $20,000 on hand to pay for the loss?
General liability insurance will protect you as a renting tenant if you should cause fire damage or some other as such to the property you’re renting.
How Do I Know if I Have Enough Business Insurance?
BizFilings, an online company that provides entrepreneurs with business advice, suggests that to know how large or small a general liability insurance policy you need, you must consider the value of your property (structure and merchandise), your insurance agency’s limits and the legal minimum you are required to take out in your state. After you have gathered the necessary information, discuss with your insurance agent what more you need to do to make sure your business is protected.
Running a small business takes time and money. To make sure you and your business are protected, get general liability insurance today with CoverHound.