Let’s face it: Small business liability insurance is a risky thing to go without if you’re a small business owner. The daily uncertainties and liabilities that a small business must face are too great to gamble and trifle with. Even though being sued is probably the furthest thing from a small business owner’s mind, it can happen, and if it’s severe enough, it can jeopardize everything they’ve worked years to build. A small business can be sued any number of reasons, including personal injury, negligence, libel, slander, omissions, poor-quality products, false advertising, etc.; therefore, it’s not a bad idea to be armed against the dangers of being sued. For those of you who are curious about small business liability insurance, here are three essential things you should know before ever purchasing a policy.
Don’t think you have to go to an insurance broker to find the best rates
Often, small business owners will run to the first insurance broker they can find and sign up for a liability insurance policy. Although that is one way to approach purchasing liability insurance, it’s not the best way. Many professions belong to a myriad of trade and professional organizations and associations, and these groups commonly already have negotiated rates with insurers who provide liability coverage in your field. Should your small business belong to a specific association, contact them and see if they can explain the best liability coverage available to your business. Also, before you ever purchase a plan, speak with liability attorney to see if the policy provides all the needed protections for your business. If you do go to a broker, or even directly to the insurance company, remember to be assertive with your needs and what you’re willing to pay. Although this can be tricky, there are some excellent assertiveness skills you can apply to help you feel more confident.
There are tiered levels of coverage your business can subscribe to
Insurance companies offer different coverage levels for each and every small business. As a small business owner, you can determine the exact coverage you want/need from the quotes your insurance agents compiles based on business location, property holdings, line of business, business success, and business policies. There may be some areas you don’t need coverage, such as in poor-quality products, and if that is the case, an agent can usually negotiate a lower rate. As always, seek out several insurance quotes and compare them to find the right coverage for your small business,.
There are some things that aren’t included in small business liability insurance
Indeed, most small business liability insurance policies are pretty broad, but there is a small list of perils that aren’t cover by most liability policies. These perils usually include anything involving pollution or environmental damage caused by your business or its representatives. It also excludes product liability claims when your products cause harm to a person or group of individuals. There are insurance policies that deal with these exclusions, but they must be purchased outside of your small business liability policy.
If you’re a small business owner, chances are you’ve already looked into small business liability insurance, so whenever you start comparing different policies, always keep these three important points in mind.