The world of business insurance can be quite complex. And admittedly, it is not the most fun aspect of any entrepreneur’s job. But, needless to say, business insurance, in particular liability insurance, is extremely important to your business. It can keep the doors open during critical events and can consequently protect everyone involved.
What exactly is liability insurance? Simply put, this kind of insurance covers the business in the event that a claim is brought against the company for medical care, legal fees, or damaged property. So let’s say for example, that somebody slips and falls in your shop. As a result, there could certainly be medical bills associated not to mention legal fees. How high those can go can, is difficult to say. In this instance, your liability insurance would cover these costs up to the limit associated with your policy. It is thus extremely important to discuss those limits in depth with your assigned insurance agent.
Why Get Business Liability Insurance?
Especially if you’re a smaller business, legal fees associated with property damage or injury could be devastating. In fact, such costs have put some small businesses into the red until they eventually had to shutter for good. They simply could not recover from the losses.
Business liability insurance helps to pay legal costs
As most people know, legal costs can add up quickly and monumentally. Unfortunately, society can be quite litigious at times. You, therefore, want to be prepared in the event that a suit is brought against your company. You don’t want to have to pay for this out-of-pocket. This is where liability insurance comes into play.
Liability insurance can be needed if you want to rent an office space
In many cases, if you are looking for office space for your business, landlords may require you to provide them with a certificate of liability insurance. This is because they want to know that your business is covered against certain liability claims so that you will continue to be able to run your business.
This insurance lends credibility to your company.
Many people, when dealing with certain kinds of businesses, want the reassurance that comes with knowing that a company is insured. If you’re a general contractor, you’re likely required to carry liability insurance. Other industries as well will require you to have liability insurance. Not to mention, being able to show your certificate to potential customers can help you solidify the deal.
Liability Insurance Coverages
Again, the world of business insurance can be somewhat complicated. Different types of insurance cover different occasions, different people, and different events. Among that which is covered by this type of insurance:
- Personal injury someone suffers while interacting with your business or in your establishment
- Medical costs associated with such an injury
- Any legal costs from the above that you may incur
- Certain types of property damage
- Injury resulting from libel or slander
You will need to consult your specific insurance policy to understand the exact terms and what precisely is covered and not covered. But working with a trusted insurance rep is your first step. Asking the right questions is imperative.
First Union Lending is Here to Help
We want to help your business succeed. We’ve worked with small businesses across the United States. And our representatives are on hand to walk you through the process every step of the way. There are no surprises and no lingering wait times. Most of our clients will be funded within 2 to 3 business days. Yes, we really do work that quickly. And even if your credit score is less than ideal, we might still have a financing solution for you. We don’t believe in holding you to one number or score. This is our promise. Call today.