What many business owners neglect is the need for liability insurance. Simply having business insurance is not enough. There are gaps in traditional business insurance policies that leave companies liable for accidents and enormous attorney fees in the event of a lawsuit. Business owners should consider adding liability insurance to their existing plan or bundle it with what is called a Business Owner’s Policy, or BOP. This ensures that the business is always covered and will be able to provide injured persons or company lawsuits with funding to cover damages.
Protect Against Injury Claims
A business is at risk for consumer injury at all times. In some cases, these injuries occur due to consumer misjudgment. In any event, businesses need to be prepared for these occurrences. Protection via liability insurance will help to cover the medical expenses of an injured consumer while on your property.
Some injuries can be severe and consumers will think that they can sue for large sums of money. An investigation as to where the fault lies must be conducted. In the end, most consumers end up getting their medical bills paid along with a small amount for personal pain and suffering. Claims made on this type of insurance can cause policy premiums to rise. It is important to maintain a proper amount of insurance while operating a business to cover any potential claims.
Bundle with a BOP Plan
As mentioned above, a business owner’s policy is quite different from carrying a liability policy. Many BOPs do not include liability coverage. It is ideal to bundle in a liability policy with a general BOP. This will ensure that all of your bases are covered.
Business owners are responsible for maintaining insurance policies to cover employees while working, the building and the property. Business owners are not liable for vehicles, other than those owned by the company. Some business actions must also be covered, such as purchases of goods, shipping of goods and legal interactions. All of these items should be rolled into a single plan so that one premium is paid through only one insurance institution.
Protection in the Event of a Lawsuit
In the event of a lawsuit, you may need a defense attorney. When this happens, the insurance policy for liability will help to cover those expenses. Regardless if the case is dismissed due to lack of evidence or failure to substantiate a claim, or if it goes through a full trial, the liability coverage will be enough. Of course, you can expect to have to pay a deductible or some cost, but it will be far more feasible, especially for a new business, than paying out of pocket for an attorney.
Small businesses need protection, just like big corporations. Most are unaware that liability coverage is even available or small business owners. Based upon the type and amount of coverage needed, premiums will vary. Speak with your agent regarding bundling with a BOP as this can provide a bit of savings. You can never have too much coverage as a business. The day that your business launches, these policies should be in effect. Even during construction, you should consider having this type of policy in effect. It shows that you are responsible, care for your assets and care for employees and workers, as well as your clientele.