As a small company, you may not think much about lawsuits or claims from customers. You work to provide a service or product to your customer and do your best at it. Yet, risk follows every company. Without general liability insurance, a small business is vulnerable to financial loss. In some cases, this can cause the folding of the company. To avoid this, know everything you can about this form of business insurance. Here’s some insight to help.
Small companies are as much at risk as larger ones for claims made against them. Mistakes happen. Some claims may not be authentic. Yet, there are benefits to having general liability insurance no matter what type of industry you are in. That includes the following:
- It helps to pay for losses people suffer when you or your staff make a mistake. This includes product failures or when someone slips on a wet floor.
- It pays for the medical bills, lost time at work, pain and suffering claims, and much more so you do not have to do so out of pocket.
- You also have an attorney to represent you should this type of case go to court, such as in a lawsuit.
- It can help to restore your reputation if your business suffers false accusations in such claims.
- If the court deems you are responsible, your policy covers the settlement or judgment awarded to the company as well.
If you are still unsure if your company is really facing any risks, think again. Each year, people file claims for things such as:
- Injuries while they are on the premises
- Product failures
- Property damage claims
- Illness claims
The list goes on. Without some type of business insurance, your company remains vulnerable. Yet, this type of insurance can be an easy investment.
No matter the type of industry you are in, your business insurance agent will work with you to understand the actual risks. The will look within your company, at your customers or others interacting with your location. Then, the agent can help you determine the right amount of coverage for your needs.
General liability insurance is one of the most necessary forms of business insurance. It is also one of the easiest policies to purchase. It can be affordable for many companies. You can and should consider combining it with other policies, such as property insurance, to reduce your overall costs. Improving your business’s risk is critical, and these products can help.