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Are you starting a small business? Do you already own a small business? You've probably well aware of the risks associated with any business, especially a small business. In this post we're going to talk about how to reduce that risk with liability insurance. Let's dive in and talk about how to get liability insurance for a small business.
What is Liability Insurance
Liability insurance exists to protect a business from possible financial liabilities caused by lawsuits and other claims specified in the policy. Typically. liability insurance protects against financial payouts due to injury, damage to people/property, and lawsuits.
Most employers offer the typical "workers comp". This is classified as liability insurance. It protects the company from responsibility for your injuries gotten at the worksite. It's important to know how to get liability insurance for your business. Besides, Not having it could be the difference between your business surviving tragedy, and going under. Not to mention, liability insurance is often required by law.
In short, consider getting liability insurance if your business, or product of your business, has potential to cause harm to someone else, or to their belongings.
Steps to Get Liability Insurance
So now that you know what liability insurance is, let's dive in and explore how to get it! There are really four steps to getting liability insurance:
- Determine the types of risks your business will encounter. For instance, if you have an online business you most likely won't have to worry about customer injuries.
- Compare insurers. Like all things, no two insurers are the same. It's important for you to know the difference between the offers out there. Therefore, do your research.
- You need to get a quote. After that, you'll have an idea of how much to expect to be paying for your plan.
- Review your policy every year! A lot changes within a year. Don't let your policy fall behind your business. The last thing you want is there to come a time when you need to use your insurance only to find it's not covering what you need!
There are different types of liability insurance plans. You will have to pick based on your small business' needs.
- Umbrella Liability Insurance- Protect against catastrophic losses
- General Liability Insurance- Coverage typically includes bodily harm, and property damage, premise of operations liability.
- Director and Officer Liability Insurance- Protects board of directors/owners in the case a company is sued
- Product Liability Insurance- In the case your product causes harm to others.
- Employer's Liability Insurance- Protects business from liabilities due to injuries of employee.
In conclusion, learning how to get liability insurance is a must for your small business. Above all, this is something that you do not want to put off. Putting this off can prove very costly if the wrong situation were to arise. Go out there. Do your research. Get it done!
Catch you on the flip,
P.S. If you are wanting to, or have ever wanted to start a business, but are lost on where to start, click here and check this out