Running a business is full of surprises, but not all are pleasant. Your business could buzz with customers, everything's going great, and then, surprise! A customer is injured on your premises.It's something every business owner dreads but can't foresee.
"It's better safe than sorry." This idiom couldn't be truer when protecting your business. You can't predict every accident or issue that might lead to a hefty claim for damages. Liability insurance can protect you if someone sues or files a claim against your business.
Liability means your business is accountable if someone gets hurt or suffers a loss because of something related to your operations.
It's your responsibility to make sure everything on your property is safe. Your business might be liable if something's unsafe and should've been secured. Similarly, if something's broken and should've been fixed, responsibility could fall on your business. This also applies if your directors or employees commit errors that affect a customer or their property.
Liability insurance differs from other types of insurance. It covers claims made by third parties, such as your customers, rather than compensating you, the policyholder.
Without liability insurance, your business is walking a financial tightrope. Unexpected accidents can and do happen even when managing a peaceful bookstore or spending days in an office.
The risks don’t end with lawsuits and reputational damages, either. You might have difficulty drawing in good employees and clients without adequate insurance. People don’t want to risk not being covered if they get injured or sick.
Liability insurance helps protect your business from the financial impact of accidents, injuries, or damages that might happen. If someone sues your business, the insurance helps cover the costs and save you from potentially huge expenses.
Here are the types of liability insurance that you can get for your small business:
You could get commercial umbrella insurance if your business needs additional coverage beyond your policy limits. Suppose your business is liable for a customer's injury, and you're facing a $300,000 lawsuit with only $100,000 in liability coverage. A commercial umbrella policy can cover the remaining $200,000, up to its limits.
Running a business comes with a lot of responsibilities. One of the big ones is making sure you're legally compliant. Certain types of liability insurance are mandatory depending on where you’re operating and the type of business you have.
Workers' compensation insurance is mandated in almost every state. If you have employees, you need to have workers' comp to cover any injuries or illnesses that happen on the job.
Even if you aren't required to carry some form of liability coverage, it's worth thinking about for the peace of mind it provides.
Having solid liability insurance tells your customers and partners you're worth their trust.This sense of security can make them more comfortable and confident in working with you.
Knowing you have liability insurance can be a big relief. If something goes wrong, you have the financial backup to deal with legal fees, settlements, or judgments.
This assurance lets you focus on running your business without constantly worrying about potential legal issues.
Even the most diligent businesses can’t foresee every potential issue. Comprehensive liability insurance is the best way to protect yourself against liability claims.
CoverHound understands the unique challenges small businesses face. Our expertise and personalized service ensure you get the right coverage tailored to your needs. Partner with CoverHound today and gain the peace of mind that comes with knowing you’re fully protected.
Insurance shopping simplified
Insurance shopping simplified
