DOES YOUR SMALL BUSINESS NEED LIABILITY INSURANCE?
Owning your own business is an exciting responsibility. You have the freedom to take your business in whatever direction you’d like to take; but in order to get there it’s important to protect your hard work.
There’s a lot to keep track of—making payroll, employee retention, building your brand, and expanding client base. But one thing you don’t want to forget about, is purchasing the liability insurance you need when you need it.
What should you look for? Here are some important points to consider when purchasing small business liability insurance.
Do You Have Employees?
If your small business has employees, you could be responsible for the actions they take. Even if you do everything right, your business could be sued if one of your workers injures a client or causes an accident.
Having the correct liability insurance policy can protect you from the actions of your employees. As the employer, the ultimate responsibility falls on you, and without the right insurance, you could find yourself on the wrong side of a costly judgment.
Who is Doing the Driving?
If your business requires travel, you will need to make sure you are protected from liability. Keep in mind that your personal automobile insurance policy may not cover you for business travel. If you have an accident you could face enormous costs.
A commercial auto insurance policy provides protection for business driving. In some cases, you may be able to add this coverage to your existing automobile insurance policy. In other cases, it may make more sense to purchase coverage elsewhere. No matter what the case, it is important to protect yourself during your business travels.
Running a small business is hard, and it is important to protect yourself. Simply owning a small business could put you in the crosshairs for nuisance lawsuits and costly litigation, but taking proactive measures and having the right insurance coverage in place means you can spend less time worrying and more time building your business.
How Vulnerable is Your Business to Lawsuits?
Not every small business faces the same threat of lawsuits, so it is important to assess your own situation. If you run your business out of your home and serve your clients remotely, the risk of injury-related lawsuits is probably pretty low. If, on the other hand, you see a steady stream of visitors and customers, your liability risk goes up exponentially.
Some kinds of businesses, like sports training and healthcare, are also more likely to be sued. If you run a particularly risky type of business, a quality liability policy is an absolute must.
Do You Own or Rent Property?
In many cases, business insurance will be required when signing a commercial lease. If you plan to lease space for your business either now or in the future, having a general liability and property insurance policy in place will make the process easier.
Many commercial landlords require this type of insurance, and not having a policy on place could scuttle your plans and hold back your growth. Even if you do not currently lease office space, you never know when you might need it.
At Peter B. Crilly & Associates, protecting your business is our priority. Call us at 410-571-1771 or Contact us at [email protected]