Every business, whether a start-up or established, may face workplace mishaps that could result in lawsuits and claims. For example, a customer may slip on a wet or uneven surface and sustain bodily injuries, making you liable for their medical expenses.
If you or your worker accidentally damages your client's property, you have to cover the repair or replacement costs. Otherwise, you will be sued, which may cost you a hefty settlement, along with lawyer fees and court expenses. However, if you have liability insurance, all the unprecedented incidents and resulting expenses will be covered. That's why it is crucial to have liability insurance for your small business.
Liability insurance is designed to cover third-party bodily injuries and property damage while protecting the insured from the lawsuits resulting from such incidents. There are different types of liability policies available, but not all of them are required for every business. You can choose the policies depending on your requirements and business-specific risk exposures.
Small businesses must have the following liability policies to keep their business running smoothly:
It covers:
It includes three coverages for your business:
Also known as errors & omissions coverage, it covers your business from mistakes you commit in the services provided to a client or customer.
It covers claims resulting from:
It protects your business against the costs associated with workplace accidents and deaths beyond your worker's compensation limits. Say, for example, you have compensated your injured employee, but if they feel it's not enough, they can sue you for further compensation. In such circumstances, the remaining will be covered by employer liability insurance.
Though it is not legally required, some clients may require you to carry liability insurance, so they don't have to pay for the damages or losses caused by you or your operations or employees. Besides getting the highest possible protection for your business, having liability insurance is a way to attract more clients, showing that you care about your clients and their investments.
At CF&P Insurance Brokers, we offer all-in-one general liability insurance to cover your business against potential liabilities and lawsuits, so you can work with peace of mind. Contact our insurance professionals today to customize your liability coverage according to your needs and budget.
