If you own a business you probably have heard about business liability insurance and how it works for businesses. Businesses face risks in the normal course of operations especially if the business has a physical, brick-and-mortar setting.
Business insurance primarily covers the cost of injuries or property damage that third parties can claim against your business. There is more to business insurance than just coverage for injury and property claims, however.
Read on to know what business insurance is and what kind of insurance is best suited for your operations.
Types of Business Insurance
There are different types of coverage you can get for your business. These include:
General liability insurance
General liability insurance covers physical and property damage costs as well as costs for legal fees, settlement and judgment costs, and costs for the appeal. They may also cover the legal costs you can incur protecting your business or brand from slander or other malicious claims.
Product liability insurance
Product insurance is useful for businesses exposed to risk when defective products cause physical injury or property damage. The amount of coverage you need depends on the kind of products the business produces. For example, you can expect more affordable coverage for a crafts supplies business compared to high-risk products such as pharmaceuticals or electric appliances.
Commercial Property insurance
Business losses incurred when commercial property or equipment are damaged due to fires, floods, theft, vandalism or arson fall under this type of business insurance. Your property insurance can be all-risk insurance or peril-specific, depending on the types of risks your business faces.
How Much Will Your Insurance Cost?
The overall cost to insure your business depends on a number of factors. These include:
- the size of your business
- type of business
- age and location of your business
- the condition of your physical premises
- your preferred policy details
- your insurance history
Why is Business Insurance Essential for Your Business?
Business insurance primarily helps you meet financial claims made by people who suffered injuries or damage while doing business with you. If someone suffers bodily injury during your normal business operations, you may be required to pay for medical expenses. Depending on the severity of the injury you could be looking at hefty medical bills that are too expensive to pay out of pocket.
For example, a customer may slip and fall on a slippery store floor. Someone may bump against your office’s glass door, causing him or her to suffer cuts and bruises. Or your workers may have dropped heavy equipment and damaged your client’s floor. These are just a few examples of all the things that could wrong for a business owner, which makes business insurance essential protection against potentially damaging lawsuits and claims.
With business insurance coverage, you won’t need to dip into your profits and savings in order to meet claims like these. For small, family-run businesses, having this kind of safety net could mean the difference between being able to continue with normal operations or shutting down because costs are just too high.
Business insurance coverage also extends to any legal issues that your business may face. Accidents and injuries may give rise to lawsuits against you or your business. This easily translates to additional costs for hiring a lawyer and all the legal fees that you may incur during the proceedings. Your insurance can also cover judgments and settlements that you’ll be required to pay.
Businesses and business owners already face so many risks without the threat of claims from customers for injuries or property damage. However, accidents can and do occur in any business setting. The longer you’re in operation, the higher the chance that you will encounter these claims at some point or another.
Be proactive about protecting your business from unexpected claims and costs. Get in touch with us to know what kind of business liability insurance offers the best protection for your business so you can continue to serve your customers with confidence.