Why Business Liability Insurance is a Must-Have for Business Owners
If you are a business owner, you should have commercial general liability insurance coverage. This type of coverage will protect your business, covering the costs for claims involving bodily injury from accidents and property damage. Simply put, a general liability policy will protect you from the high costs of lawsuits. Without it, the out-of-pocket expenses, even from settlements out of court, can be higher than many business owners can handle.
As with any insurance policy, it’s all about protection. You hope you’ll never need it. But if you do, you’ll be glad you have it. For instance, general liability insurance covers you for unforeseen things.
What could go wrong?
There are a number of reasons to have general liability coverage. If there is an accident on the premises where you are renting—flood or fire damage—you would be responsible for the cost of repairs. If an employee falls while working at your business they will incur medical bills that you would be responsible for paying. These situations are always possible, and that’s why you need to be protected.
Business Owners Policies vs. Liability Insurance
The type of coverage you get depends on your business. If you are a business owner who rents commercial property and employs many people, you would most likely want to get a business owners policy. This is because you’ll have greater liability issues.
If, on the other hand, you’re a contractor who doesn’t need to worry about property insurance and you don’t have people working for you, then you’ll want general liability insurance.
How Much Will General Liability Insurance Cost?
There are several factors that will influence how high your liability costs are.
The type of business you have. For example, is your business involved in many moving parts—production, delivery, customer service? Or is it simply a business that provides one service only, such as delivery or manufacturing?
Where you do business. Location plays a role in two ways. 1) If you’re located in a densely populated part of the country where many claims are made, your costs will go up. 2) If you require a number of facilities to do your business as opposed to only one, your costs may also go up.
How many employees you have. As mentioned above, if you are the sole contractor working for clients, you have less risk than if you employ a number of people. Whether your business is small or large, having employees will always increase your risk.
A Word about Workers Compensation
As a business owner, you must carry workers compensation. It will cover the costs if one of your employees is injured while on the job. If an employee has to lose work time from an extended illness or injury, it will cover the lost pay. And finally, it will cover legal fees if an employee should sue you.
Business owners have a unique set of challenges, which is why it’s so important to get the right insurance. Keep checking our blog for more helpful commercial insurance tips!
And for more information on insurance for business owners, please contact Zawada Insurance Agency.
Zawada Insurance Agency, Inc. is a family-owned and operated independent insurance agency, located in Worcester, Massachusetts, serving central Massachusetts and beyond.