Being an owner and running a small business involves a lot of tasks as well as liability. No matter how careful you operate and what level of service you provide, customers can still claim that what you did was wrong.
Bizstats.com stated that over 78 percent of small businesses in the United States are organized as single proprietorship or partnership. This kind of ownership for many small company proprietors leaves their private and business responsibilities in jeopardy, but with business liability insurance, you can be sure that your private life and company will be free from any financial issues.
This kind of insurance offers protection for your small company if a case was filed for individual or property injury. It generally insures lawsuit costs and damages. Business liability insurance can be obtained in different forms and based on the demands of your business.
General liability insurance is a type of business liability insurance and the major coverage in protecting a company from marketing claims, injury claims and property damages. It is also called as commercial general liability or CGL and could be the only insurance you will need, based on what type of business you have.
Professional liability insurance, also called as errors and omissions, is suitable for company owners who offer services. It protects a business as opposed to errors, omissions, malpractice and negligence. For some professions, it could be an official requisite to have this policy, like physicians need this coverage to be able to work in particular states.
Small companies manufacturing and selling good must be covered in the event a consumer becomes injured because of the product, so they need product liability insurance. The total coverage and risk level depends on the kind of company. A scrap book supplies dealer has less risk compared to a builder of wood stoves.
The rates of insuring yourself and your company from possible legal cases are way high. Due to the 9/11 attack and stock market, insurance policies became expensive with lesser coverage. Each company owners who plan to renew their current policy must first look for the right coverage and rates for business liability insurance.
Success will follow if your company is protected from possible dangers. You may wish to discuss your preferences in business liability insurance with a friend, company associate and insurance rep.
