What Is Liability Insurance and Why Is It Important?
Liability insurance is an essential coverage for small business owners. It helps protect you from claims that your business caused bodily injury and property damage. The importance of liability insurance is that every business faces claims that can come up during normal operations. Without coverage, you’d have to pay out of pocket to cover claims, which can put your business at financial risk.
One type of liability insurance that many small business owners have is general liability insurance. Also known ascommercial general liability insurance or comprehensive general liability insurance, it can help protect you from claims that your business:
- Hurt somebody
- Damaged another person’s property
- Caused reputational harm through slander or libel
Be aware that general liability insurance is just one type of liability coverage. Because of this, it doesn’t cover every kind of liability claim. For example, it won’t help your employees recover from a work-related injury or illness. For this kind of claim, you’d need to have another type of coverage called workers’ compensation insurance. You’ll likely need to get other types of liability insurance to give your small business comprehensive protection.
Features and Benefits of Liability Insurance
Protecting your business from certain claims is just one of the benefits of liability insurance. Other features and benefits include:
- Helping pay for your business’ legal costs to defend your company in a lawsuit
- Proving you have insurance coverage to clients and customers and letting them know you can finish a job if the unexpected happens
- Protecting your employees and helping them recover if they get a work-related injury or illness
- Paying for customer medical bills and medical expenses if they get hurt in your business
Examples of the Importance of Liability Insurance for Small Businesses
1. Shows Business Maturity
As a business owner, you want to show your customers that you’re responsible and trustworthy. Carrying a general liability insurance policy does just that. It shows you understand the risks your company faces during your daily business operations. We can give you a certificate of insurance to help you prove to customers that you have liability coverage.
2. Protects Your Livelihood
Liability claims can come from some of the most common business situations - and they can be expensive. Your business can be at a greater risk of liability claims if you or your employees:
- Represent your business
- Meet with clients face to face
- Work on a client’s property
3. Helps You Sign a Lease
If you’re trying to rent an office space or building to operate your business, some landlords may ask you to see a certificate of liability insurance. This will show you have insurance coverage that can help protect your business from certain liability claims.
4. Easy To Extend Coverage
Sometimes contracts require you to add people to your liability policy. We make it easy to add them so they’ll have coverage.
Key Takeaways About Liability Insurance
Liability insurance is one kind of essential coverage that most small business owners need. Without it, you’d have to cover liability claims out of pocket, which can get expensive. In fact, many small businesses don’t have the financial resources to pay for liability claims. These kinds of claims are more common than you may think and they can come up during normal business operations.
Get a Liability Insurance Quote Today
We’re an experienced insurance company and we know the unique risks that your business faces. Our specialists are here to help you get the liability insurance coverage you need.Get a quote today.
