Operating a business involves several things, not just your regular daily operations. You also need to havean efficient response plan for any unforeseen mishaps.
There are several countermeasures that you can put in place to protect your business. One of these countermeasures is having a business liability insurance plan on hand. An insurance plan will help protect your business from risks.
What is business liability insurance?
Every business that provides services faces the risk of having a dissatisfy client. While most dissatisfied actions are inconsequential to your business, some rarities are. Having liability insurance will protect your company from going under because of these dissatisfactions.
Business liability insurance can cover the cost of lawsuits because of work errors or oversights, missed deadlines, budget overruns, undelivered services, incomplete work, accusations of negligence, and breach of contract.
Lawsuits can be costly. However, having business liability insurance will help cover its cost. In addition, it ensures that your business stays afloat while you go through the process of defending yourself in court.
Is business liability insurance required in running a business?
Not all businesses are required to have liability insurance. However, some businesses need this type of insurance more than others. These businesses include consulting firms, medical clinics, engineering companies, and real estate firms.
Liability insurance is essential for service-based businesses.
How can it help protect your business?
There are many ways that business liability can protect your business. For example, it can cover the cost when you are legally obligated to pay for the medical treatment of somebody who was injured while on business with you. It can cover the damage payment if your services cause any property damage to your clients.
Business liability damage can also cover the cost of a lawsuit if your employee sues you or if a dissatisfy client decides to take you to court.
Types of business insurance
The type of business insurance you should have depends on the industry you are in. Here are examples of business insurance you can get:
General Liability Insurance
This type of insurance will help protect your business from claims due to bodily injury, property damage to your client, or personal damage like libel or slander.
Commercial Property Insurance
This type of insurance provides coverage for your owned or rented building, including the equipment you use for your business. This insurance, however, does not cover natural catastrophe damage.
Business Income Insurance
This type of insurance will give you coverage to help replace your lost income. It can cover costs like payroll, rent, or utility bills. It is also called business interruption insurance.
Professional Liability Insurance
If you are in the business of providing professional services, this insurance is right for you. It includes coverage for lawsuits resulting from errors you made.
Workers’ Compensation Insurance
This insurance type will pay your employees’ benefits if they get sick or hurt while doing their job. For example, it can help pay for your workers’ medical bills, funeral costs, or physical therapy.
Commercial Auto Insurance
This type of insurance protects you and your employees on the road if you drive a company-owned vehicle.
There are many insurance plans that you can avail of. However, it would be best to consult a trusted insurance provider to know which business liability insurance plan is best for you and your business.
