Do I Need Liability Insurance for My Small Business?
Updated on November 29, 2019
Unfortunately, we live in a time when litigation and lawsuits against business owners is fairly common. After putting in the time, money, and resources to build your business, you want to make sure it is protected. Small business liability insurance will often protect a business’s assets if an individual gets injured on your property or injuries are caused by your employees. It is important to know what small business liability insurance covers and why this type of insurance is necessary.
What Does Liability Insurance for Business Cover?
Liability insurance for business can cover a variety of legal issues that may arise if you own a business. The U.S. Small Business Administration lists some of the problems that a small business owner may face that liability insurance generally covers, up to the policy limits.
- Small business liability insurance will cover the cost of any legal defense or any settlement that may be awarded if you would be sued.
- Liability insurance for business will protect your business’s assets if an individual gets injured on your property.
- This type of Insurance can also protect you if you’re a tenant and there is property damage to your rented property, for example because of a fire.
- Small business liability insurance will also often cover claims of slander, libel, copyright infringement, and misleading advertisement.
Why Would Liability Insurance for Business be Necessary?
No matter how carefully you run your business, accidents can occur with both customers and employees. Even one lawsuit could possibly bankrupt your business and destroy years of work. According to Freshbooks.com exactly what kind and how much insurance you need depends on the type of business you have. A construction or home building business will likely need more coverage than an individual who works in web design.
It is important to have a liability insurance plan in which your maximum coverage is high enough to meet whatever level of risk is in line with the specific type of business you’re in. Small business liability insurance is available in several specific areas to meet the needs of each individual business. A few specific types include employment related liability insurance, product liability insurance, and professional liability insurance. Findlaw.com states that business insurance is something an entrepreneur shouldn’t cut corners on. They discuss several specific examples of when a business owner would need small business liability insurance.
- Liability insurance for business would be needed if a customer slips and falls on a recently washed floor.
- Small business liability insurance would be necessary if all of your computers are stolen.
- You would need small business liability insurance when an employee needs surgery for carpal tunnel syndrome because of a work-related injury.
- Liability insurance for business would be needed if an employee leaves a coffee maker on and a fire starts.
How Do I Find the Best Small Business Liability Insurance?
When looking for liability insurance for business, it is necessary to shop for a policy that best meets your specific business needs. Contact eHealth for more information regarding all your small business insurance coverage needs.