When it comes to owning a business you will improvise a thousand times. One place you should never get by is when it comes to your business insurance, especially your general liability insurance. If you are planning on starting a business, insurance is a must. You need to determine what type of protection you need, how much insurance you can afford and exactly what is required for your industry.
General liability insurance is commonly known as commercial general business liability. It is meant to be purchased and carried by business owners to protect the company’s assets and obligations. This insurance covers costs related to property damages and injuries that are caused by you or your employees. Liability policies for business often also cover legal needs including compensation both monetary and punitive.
Another thing that general liability insurance for your business covers is any damages to property against you as a tenant. If damage is caused to the property in which the business is located liability insurance makes sure you are covered. This insurance coverage can also protect you and your business in claims of any fictitious or deceptive marketing and copyright issues.
The question isn’t if you need business liability coverage it is how much coverage is needed and what additional policies are needed to make sure your business is completely covered in all cases. Although you can purchase general business liability insurance on your own, it is not always in your best interest to. A business owner policy should bundle liability insurance, property insurance, automobile insurance, umbrella insurance, workman’s compensations policies and more to offer your business comprehensive coverage.
How much coverage is needed will depend on a few different factors including the industry in which your business is in, the risks involved, the location and the number of employees on staff. Take for instance the difference between a web developer and a roofer. The risks involved with construction far outweigh those of website developers however this is not to say there is no risk in web design, they just vary in severity. The likelihood a web developer has carpal tunnel far outweighs his risk of breaking his leg whereas a roofers likelihood to fall and seriously harm themselves is greater. This being stated you can see how the coverage and amount of coverage will vary greatly between different businesses as will the premiums.
Before rushing out and purchasing the first policy offered you must do research and meet with several different business insurance agents to ensure you are getting the right coverage at a reasonable price. With any product or service what you will pay from one business to the other varies, even when purchasing the same exact product. When you own your own business you know every penny counts thus ensuring you are getting the most coverage for your money.
Insurance is never important until you need it but of course as we all know it is too late at that point. It is always imperative to understand what you are purchasing and it could never be truer than when insuring your livelihood.