Small Business Liability Insurance: Overview of What This Insurance Covers

The unexpected can always happen with any type of business, so it is important that you have financial protection. Don’t think that just because you have a small business you don’t need insurance. No matter what industry you are involved in, small business liability insurance is a must. It’s not uncommon for small businesses to face some form of litigation for some reason, and the cost of not having insurance is often much higher than the cost of purchasing coverage.

Some of the common things covered by liability insurance include lawsuits, settlements, investigations, professional liability, and medical expenses/attorney fees for anything your business is legally responsible for. Some things that might not be covered under general liability include employee injuries, intentional acts, and auto-related coverage.

There are also industry-specific things your business might need coverage for. For example, you may need some protection against copyright infringement laws if you are involved in marketing or advertising. If you run a business that requires you or your employees to do a lot of driving, then you’ll need commercial auto insurance. If you have employees, some states require disability insurance or some form of workers’ compensation insurance.

Small business liability insurance and worker protection that covers physical injuries is especially important if your business works where accidents are most likely to occur, such as manufacturing, landscaping, or construction.

Small Business Liability Insurance Costs

It really doesn’t have to cost a lot of money. There are insurance companies and agents that will help you get affordable coverage to suit your type of business and size. It is extremely important that you choose an insurer that has a strong track record of settling claims in a timely and fair manner. The company must also have a track record of high customer satisfaction. You should always be able to get customer support and responsiveness when you need it, especially when and if you file a claim.

If you’re a high-risk business, it’s best to look for insurers that offer blanket or excess insurance to increase your coverage limits and ensure you’ll be covered whenever there’s a claim against you that exceeds your blanket policy amount.

Once you’ve purchased insurance policies, always stay on top of your coverage to make sure it’s always up to date. Consider the type of insurance you have whenever you have a major business decision to make.

The best place to start your search for small business liability insurance is Hiscox Business Insurance. This is a great company with an excellent reputation that offers customized and affordable policies for each specific type of business in all industries.