Liability Insurance for Small Businesses: What You Should Know

A business that tries to avoid additional costs beyond necessity, shouldn’t do so just for the immediate financial gains. You need to prepare for the future, which could include considering how you’ll pay for injuries and property damage.
In these unforeseen circumstances it’s recommended, if not required, for a company to take out a general liability policy. This coverage protects your business from a range of claims, including bodily injury, property damage, and any personal injury related to your operations. While it might seem like an unnecessary expense up front, the costs behind each accident is enough to drain your finances and possibly put you out of business.
Additionally, if you’re looking to secure work or contracts, other companies or business partners may require you to have general liability coverage before you sign the dotted line to start a new project. What should you know?
For General Liability
Businesses of all sizes, including small companies just starting out and independent contractors, should have this coverage. When it comes to a policy, you can take it out alone or as part of a BOP, which rolls property insurance and general liability into a single policy at a reduced rate.
Its purpose is to protect your company from unknown risks, help you stay afloat and prepare you for accidents that may happen at some point.
Your policy will:

• Help pay for medical expenses, attorney fees and damages
• Assist in liability lawsuits, which could arise from offering a service, selling or making a product, offering an opinion or making a recommendation.
• Assist you when a current or former employee accuses you of negligence.

Other Forms of Liability Coverage
Depending on the nature of your business, general liability might not be enough. You might further want to consider:

• Product Liability – Do you sell, make or distribute a product? If so, you’re liable for customers’ safety. Should a product result in injury or bodily harm, this policy can protect you from financial losses.
• Professional Liability – Similar to product liability, professional liability protects you against claims of negligence or malpractice when you offer a service. Based on what you do, state governments may require you to carry this coverage.

Think your business needs more general liability coverage? Work with an agent at Ion Insurance to determine what is necessary to protect your assets. To start exploring your options, give us a call today at 203.439.2815.