Creating a business strategy, soliciting customers, and handling financial matters can be intimidating to a small business owner. You can suffer a variety of calamities that can seriously affect your profits. However, getting business general liability insurance coverage can make a huge difference.
Since budgets are often tight for small businesses and startups, the result might be the temptation to forgo insurance policies that aren't a legal necessity.
Your business may end up paying a high price if you take on such a risk. The cost to settle a subsequent lawsuit for slipping and falling causing bodily injury on your property can rise to as much as $20,000 for medical expenses in many cases.
Small businesses are protected from problems like these by general liability insurance. A small business insurance policy should include this coverage type.
What is General Liability Insurance?
You or your business can obtain a general liability insurance policy to protect yourself and your assets from claims made against you. There can be incredibly high costs associated with these claims if you do not have insurance.
Are General Liability Policies Required by Law?
It is not generally required, but certain industries such as the construction industry may be required to have it. Your landlord, mortgage company, or clients may still require liability coverage even though it's not typically required by law.
As proof of your general liability insurance coverage, your business may be asked by a landlord or client to present a certificate of insurance. If your company is sued for personal injury or property damage, the document proves that your business is capable of handling the case.
Furthermore, the certificate provides peace of mind for lenders, customers, and property managers that a lawsuit against you won't be costly.
What Types of Businesses Can Benefit from General Liability Insurance?
General liability insurance can be beneficial to companies of any size. Commercial general liability insurance is especially important for small business owners to protect them against the financial impact of lawsuit settlements.
Does General Liability Depend on Business Income?
There is no revenue basis to get general liability insurance. Your business' risk is the main factor determining how much insurance you need. You should also consider the number of employees, location, age, and previous insurance claims when determining general liability insurance costs.
Is General Liability Insurance Required for Sole Proprietorships?
Business insurance is usually purchased shortly after a business is launched by its owner. This policy is a good idea for businesses for the following reasons:
- Licensing your profession. Licensed professionals are required to practice in the United States, such as real estate agents, dentists, and accountants. Commercial general liability insurance may be required for a license.
- Contracting with bigger companies. Firms that hire general contractors, engineers, or landscapers need general liability insurance.
- A lease agreement for an office is signed. General liability coverage may be required for engineers, architects, and other professionals who rent offices or workspaces.
What Liability Protection Does a Sole Proprietor Have?
Many small business insurance policies provide coverage for sole proprietors since they have the same legal liabilities as corporations. Clients could take legal action if they receive a service that affects their finances, bodily injury, or property damage.
It could be possible to obtain financial coverage through professional liability insurance or errors and omissions insurance in this situation. Other such coverage may include personal and advertising injury, and commercial property insurance.
Your business is owned by you as a sole proprietor. Your business debts and obligations are also your personal responsibility. Personal and business assets aren't separated in a sole proprietorship, as they are in a limited liability company. Therefore, you should ensure you and your business operations are properly covered with business insurance.
What are the Risks of Not Having General Liability Insurance?
In the event that you do not have coverage and your client sues you over professional mistakes made by you, it might be difficult for you to defend yourself. Any judgments or settlements you receive will be your responsibility. Your personal assets are at risk if you cannot afford them.
If a business is not covered by liability insurance, judgments, settlements, and lawyer fees can be very costly and even bankrupt. It is common for lawyers to charge more than $100 per hour for their services. Even if the lawsuit is dropped, you might have to pay hundreds of thousands of dollars in court and legal defense costs.
Business owners are at risk of a financial loss if they do not have business general liability insurance. It protects you against lawsuits, and it also protects you against loss of business.
Having Insurance Grows Your Company’s Reputation
The insurance provides clients and companies with reassurance that your business is in good hands. In addition to covering many common lawsuits, business liability insurance can increase your client's confidence that your finances will be protected in the event of a lawsuit.
When you sign a contract with a client, they want to know that the work will be completed as promised, regardless of whether the client files a lawsuit or another event that is covered under the agreement.
In addition, business general liability insurance ensures that you can compensate your clients in the event your work causes property damage.
What is the Cost of General Liability Insurance?
There are several factors that influence your general liability insurance cost, but it can range from several hundred to several thousand dollars. It is important to consider the type of business you have. In comparison to businesses with a lower risk level, those operating in riskier industries pay a greater premium for business liability insurance.
Getting insurance quotes from an insurance company will help you figure out how much your commercial general liability insurance will cost. Depending on your needs, you can customize your policy. Ensure your business is protected with liability insurance coverage today.
Get Your Business General Liability Insurance Coverage
Taking care of everything isn't your forte, so let Stampede Insurance handle it. Our team can tailor a package of insurance coverage to meet your specific needs, making sure that you are protected against any unforeseen risks.
Secure your company, fill out our online form today! For your inquiries contact us at 888-476-0696 at Stampede Insurance Services!
