Everything You Need to Know About Business Liability Insurance
Everything You Need to Know About Business Liability Insurance; You have worked long and hard to get to a point where you can finally start your own business. You are a master of your profession and have learned the ropes inside and out. Now it’s time to put what you have learned to good use in a business of your own, but the one thing many budding entrepreneurs aren’t as familiar with as they should be is business insurance. There are actually several types of coverage you will need, but first and foremost is business liability insurance. Without this as your foundation, nothing else matters much. Here’s why.
Protection You Can’t Afford to Be Without
While not necessarily required by law, this is one coverage you can’t afford to be without. Before delving into exactly what business liability insurance is, this is one coverage you need to fully understand. Without high enough coverage of the right kind, a single moment in time can wipe out years of hard work leading up to owning your own business. You could lose your business and all its assets if you don’t carry liability insurance.
What Exactly Is Business Liability Insurance?
If someone was to get injured or, worst case scenario, killed as a direct result of negligence, your company can, and usually will be, held responsible. Business liability insurance pays for such things as the cost of medical treatment, pain and suffering, rehabilitation, and even property damage. What if you are a handyman, for example, and you make renovations to a home or office? Perhaps you, or your workers, didn’t install something correctly and, as a result, people were injured, and the property was damaged. Your liability insurance would kick in to pay claims against your company, thereby protecting you from losing your proverbial shirt.
Additional Coverage You May Need – Umbrella Liability Insurance
Even then, your coverage may not be sufficient to pay for everything, so it is suggested that you also get umbrella liability insurance coverage to fill in any gaps which your main policy may not cover. First, check out the different types of business insurance on http://next-insurance.com then you will understand why business liability insurance is the foundation of your insurance coverage.
The Difference Between Bodily Injury and Personal Injury
There is so much to learn about liability insurance and oftentimes business owners get a few of the terms confused. There is a difference between bodily injury coverage and personal injury protection. Don’t assume they are the same thing when choosing what types of coverages to purchase because this lack of knowledge could end up in a very large lawsuit. Bodily injury is just as the name implies, so there’s nothing tricky there. Sometimes referred to as “slip and fall” coverage, this covers any physical injury as a result of something you did or didn’t do, as the case may be. It typically is considered ‘negligence’ in a court of law.
Personal injuries are a whole different ballgame, and without this coverage, you could be on the losing team. The thing to remember about injuries is that you are accused of injuring someone’s name or reputation, causing them financial loss. Typically, personal injury covers such things as defamation of character, advertising injury, and even copyright infringement. In recent years, an active social media presence is a leading cause of personal injury claims against your business. Yes, social media is a great way to build a following, but one post can be your undoing. If ever there was a time in history where insuring against personal injury is important, it would be the digital age.
What Business Liability Won’t Cover
Looking at all of the above, you may be tempted to think that this all-inclusive policy may be sufficient. Unfortunately, that’s not the case. If, for example, you hire employees to work for your company, there are other kinds of insurance which may be required by law. Workers compensation is a good example of a type of business insurance you may be required, by law, to carry.
What about a property insurance policy? General liability insurance will not cover any damage to your property, including machinery used in your business. While fires may be covered under a property damage insurance policy, flood insurance may need to be a separate policy in some areas of the country. If you are in a flood zone, your property damage policy probably lists that as an exclusion. If you are renting your premises, your landlord may require this coverage in addition to liability insurance.
Your Key Takeaway
It is important to understand that general business liability insurance protects you from losing everything if damage is done to a third party and can be directly attributed to you, your workers, or your products. It may not be required by law, but it is the best way to protect everything you’ve worked so hard to build. Can you afford to buy liability coverage? If you are honest with yourself, the answer would always be no. This is one insurance policy every business owner should have.