The life of a business owner isn’t an easy one. They work, save, stress and work some more to get their business up and running. But most of them love every minute of it because this was always something they dreamt of. Yet that dream can be virtually wiped out in an instant if someone, who has a bad experience related to the business, decides to sue them for more money than the business is able to pay.
Legal fees can very easily be the downfall of even the most solid business, and yet it is a reality that almost all businesses, big or small, face each day. This is where general liability insurance becomes a vital asset to a small business owner. There is no way around it if they hire employees or sell a product or service to others.
Though most states require a business to have liability insurance or commercial general liability (CGL) insurance coverage, some states are more lenient than others, yet even if you could somehow get around it and avoid having it, given the litigious nature of the culture and society we currently live in, this would not be a risk worth taking.
Successful business owners understand that CGL insurance protects their business assets in the event of a claim or judgment against them. The business owners that ignore this risk, they usually don’t stay afloat for too long.
What Does Liability Insurance Cover?
Not only does CGL insurance serve as a protective shield against most of the awful things a business owner can imagine, but awful things they can’t imagine, including personal injury, libel, slander and property damage. An unfortunate reality is that lawsuits are sometimes frivolous or fraudulent, so general liability insurance also covers the incurred cost to defend against such claims; costs that include:
• Court fees
• Legal and attorney fees
• Judgments, damages and awards
• Transportation costs
• Lost productivity and profit
How to Find the Right Insurance Plan
Small business insurance rates will vary depending on the size of a business, but among some of the other factors that determine this are:
• Number of employees and staff
• What industry the business represents
• Business revenue
The best way to find the most affordable and reliable policy is to shop around for the best deal you can get. The Internet makes this convenient, faster and much more efficient, with most insurance companies more than willing to give free quotes online.
The business owner also has the luxury of choosing an affordable plan that’s right for them because, generally speaking, insurance companies are highly competitive, which makes general liability insurance quite affordable. Of course, it’s important not to think of it as an extra expense, but a long-term investment. Since it protects small business operations from any and all risk of liability to others, it provides the key that can save a small business either today or sometime down the road.
By Andre Bradley