Liability insurance is used to protect businesses or business owners from things that occur regularly in that business environment. It can also be known as business or commercial liability insurance but it all points back to the same thing. There are plenty of situations that can arise when you own a business and general liability insurance is there to protect you in those circumstances.

When it comes to insurance, whether it be commercial or auto insurance, it is better to have it just in case you need it, than to not have it when you do. Also in the United States, it is most likely going to be required if you own a business. Whether you own a small mom and pop shop or a big retail store, you are going to have customers on your property and let’s face it, accidents happen. Without insurance, one small accident could turn into a costly situation costing you lots of money and could even ruin your business.

Liability insurance can protect you in the case that you are at fault for damaging someone else’s property. For example, you have a light fixture that is loose and falls on someone, you’ll want insurance to help cover any costs that could occur if they end up in a hospital.

Liability insurance is not only helpful for injuries or physical damage, it can also protect you if you are facing legal action due to advertising issues such as libel or slander.

Is It Required?

You will typically need at least one type of insurance if you own a business. You will need commercial insurance, liability or business income coverage insurance. General liability insurance is more often found with companies that don’t have as much face to face interaction with their clients so they are only going to need it while the client is using their services. For example, general contractors might opt to use liability insurance because they are running out of a storefront and are working for someone else which will usually have their own insurance as well.

Liability insurance is useful when accidents happen, as they often do when they are least expected. It can help to protect your business if someone is injured while in your business.

How Much Do I Need?

Depending on the type of business you are running, your needs will vary based on the type of business you own and the products you are making. Many small businesses have an insurance under $1 million, but if your business is high-risk, you should consider upping the coverage. It’s also important to note that if you are working out of your home, your policy there will have limited coverage. When it comes to how much you will have to pay, that will be determined based on things like the number of people employed and how long you’ve been in business.

Contact Us Today!

If you currently own a business or just thinking about starting one, insurance is something that will always be important. You will want to do your research as well as make sure you are ready to cover those costs financially along with the costs of running the business. We would be happy to answer any questions you might have so don’t hesitate to reach out!