Why Buy Business Liability Insurance?
As a contractor or small business owner, business liability insurance can protect your company in case the unexpected happens. Liability insurance (also known as Commercial General Business Liability Insurance) covers a variety of situations, including injury or damages that occur on your property or that are caused by you or your employees. It can also cover costs associated with being sued, including legal fees, settlements or rewards. It would also cover claims of false advertising, libel, slander or copyright infringement. Regardless of whether you win or lose, such lawsuits can be extremely costly and time-consuming, taking your focus away from generating revenue. This can be devastating for a small business, so general liability insurance is extremely important.
Small business liability insurance allows you to focus on your business even when you’re faced with a claim of damage, injury or negligence. Three of the best known providers of general business liability insurance are Progressive Commercial, Liberty Mutual and Nationwide Insurance.
Business Liability Insurance: What to Look For
Not all business or industries are the same, so you'll want to look for a company that has the background and experience to handle insurance for your type of business. Also look for testimonials to show they have gained their clients trust and have a solid track record. If you expect to continue growing, consider whether the company offers coverage that can grow with you.
Many companies sell general liability business insurance, but it can be challenging to determine what kind of coverage you’ll need. It is important to consider the type of risk that you face in your business. Different types of businesses have different types of risk. For instance, a doctor would need more coverage than an arts and crafts supplier. If your business is high risk, look for companies that offer excess insurance or umbrella insurance to increase your coverage limits. This will cover you when there is a claim against you that exceeds the amount of your general liability policy.
Questions you should ask yourself, and the insurance provider, include: Can the insurer provide enough insurance to cover all your assets – liability as well as damage? Is the liability insurance they provide adequate? You want to make sure needs for your specific business are met.
If you do contract work or do projects for other companies, it will be important to check with your client about insurance. A contract may require a certain amount of coverage or an umbrella insurance policy, or sometimes a company will add you to their general liability policy to be insured on a specific project. Some businesses are required by state law to carry certain types of liability insurance, so you’ll need to check and see what your state’s requirements are.
If something should happen, you want a company with a proven record of settling claims quickly and fairly. Check an insurer's claims process to make sure the company gives you several options, including online tools, to make and track a claim. Make sure they have options that are right for you. Look for customer testimonials about the claims process from others who have been through it.
Business liability insurance should be there for you when you need it. Look for a solid company with a history of customer satisfaction. Most importantly, you want a company that has a great track record of handling claims in a timely manner.