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How Liability Insurance Protects Your Small Business

Tue, Jan 23, 2018 at 3:30PM

How Liability Insurance Protects Your Small Business

Your small business can be your life's work. It’s an integral means of support, provides useful services to customers, and contributes to the strength of the community. Given all of that, it’s important to protect this valuable asset. One way to accomplish this is through liability insurance.

At its core, this insurance option is under the umbrella of risk financing, which covers your business and employees from lawsuits and other claims. However, the benefits go far beyond the basics. Here’s how liability insurance protects your small business:

Protection Against the Unexpected

Right or wrong, it’s a fact that we live in a litigious society, where some people choose to file a lawsuit first, before exhausting other options. While we’d all like to believe things would never escalate to this level, it’s still important to be protected.

General liability insurance includes payment of medical costs. For instance, if someone gets injured on your property, or in the case of property or personal injury caused by one of your employees, you would be covered with this option.

In addition, it also covers costs associated with legal action, including lawsuits and settlements, and claims of false advertising and copyright infringement.  Cyber liability is also a facet of this option.

Professional liability insurance (sometimes called errors and omissions insurance) is centered around negligence claims due to mistakes or failure to perform.

Liability insurance is affordable for most small business owners. It can typically be purchased separately, or as part of a business owner’s policy (BOP). BOP entails liability insurance, as well as coverage for your company’s financial assets. Many small business owners find this option to be both convenient and cost-effective.

Other Protections

Liability insurance also covers your small business against claims you may not have previously considered, including incidents of employee on-the-job impaired driving, medical payments, and more.

In addition, if you rent a property or space in an existing structure, this option protects you in the event of unforeseen circumstances such as arson or accidental fire. Some structural incidents (burst pipe, etc.) are often also included in this type of insurance.

It’s important to note, however, that environmental damage or intentional pollution is not covered, nor are claims of product liability, if your product causes harm or creates complications.

Peace of Mind

It’s important to realize that there’s no one-size-fits-all liability insurance. Every industry has its own concerns and procedures that must be addressed. For this reason, you should get a customized policy that meets your company’s unique needs.

With many coverage areas to choose from, we can safeguard nearly any business. Servicing Central Florida clients since 2002, our qualified and knowledgeable agents are on hand to answer any questions you may have about the insurance process. 

Contact us today to begin a conversation on how we can help protect your business. 

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