Purchasing an insurance policy is something that is most commonly associated with vehicles, homes, and other valuables. But every small business should carry another kind of policy: general liability insurance. This protects your business from a number of things that are not just unfortunately common, but that can also cause irreparable damage to your company. Take a look below at just three reasons and examples that show why your small business should be on a general liability insurance plan.
Customer and Employee Injuries
If your business is in operation long enough, it is almost an inevitability that a customer or employee will suffer an injury. This is true no matter what kind of business you run — slipping and falling on a recently mopped floor in a retail establishment can happen just as easily as a severe injury at a construction site. Without general liability insurance, you will be forced to pay out of your own pocket for any medical expenses and related damages that the injured person may claim. If the damages are extensive and your business is found to be legally at fault, you can easily find yourself facing bankruptcy. In this light, a general liability policy is a small but worthwhile expense.
Any time damage is done to the property of a third party and is caused by a representative of your business, you can expect to be on the hook for the cost of those damages. For example, the employee of a company that provides tree trimming services may make a mistake that results in a large branch crashing through part of a roof. In this case, the cost to repair or replace the affected part of the roof would be covered by a general liability insurance plan.
Legal battles are even more costly than injuries and accidents. In fact, depending on the industry your business is a part of, they can also be much more common. Any time a third party — whether an individual or a corporation — sues you, hiring legal representation is a must. The process of defending your business is often a lengthy one and the expenses quickly add up: attorney fees, court fees, and final settlements are just some of the costs that your business is likely to encounter. Instead of risking your company's financial health and reputation, get a general liability insurance plan that covers all of the above.
For more info about general liability insurance, contact a local company.