Richmond Business Liability Insurance

Richmond business liability insurance comes in two forms: claims made and occurrence. You'll have to figure out which kind you need for your Richmond company, based on your risks and your activity. Like most business insurance decisions, deciding between claims made and occurrence policies is complicated.

However, there's one decision regarding Richmond business liability insurance that's almost always easy. What is it? The decision to purchase insurance. Richmond business liability insurance and property coverage are a must for your small business. A natural disaster or a lawsuit could easily put you out of business if you don't purchase the necessary Virginia business insurance protection.

Two Types of Liability Insurance

The difference between claims made and occurrence policies is related to the timing. A claims made policy is active for the time in which you are insured, whereas an occurrence policy is active for decades afterward. That most likely sounds pretty straightforward, but it's more complicated than you might think at first.

Consider this: you build a house in Richmond, VA, and then you retire. In twelve years, the house falls down, and the owners sue you. Regardless of whether or not it was your fault, you have a lawsuit on your hands. If you had and occurrence policy at the time you built the house, you're covered. If you had claims made coverage, you're not.

So, if your work is going to last into the future, you may want to seriously consider an occurrence policy. However, you should be aware that occurrence policies aren't adjusted for inflation or business growth. Your policy will offer you the coverage you had in place at the time of event. If your Richmond, VA business grows significantly over the years, you may find that your policy is insufficient.

The other option is to purchase a claims made policy and then add tail coverage when you stop working or switch policies. Another option, when you switch policies, is to add a "prior events" clause. Unfortunately, tail coverage is kind of expensive. Then again, occurrence policies cost more than claims made policies. Well, Richmond business liability insurance is expensive, in general!

Deciding what kind of policy you want depends on a number of factors, in the end. You need to take into account your future risks, and the anticipated growth of your company. Also, not all industries are able to purchase claims made policies. If you're not sure what type of policy will best suit your Richmond, VA company, you should talk to an agent.

A Richmond small business general liability insurance agent can make insuring your company much easier. He or she can find the most competitive rates, explain the jargon of liability coverage, and find a good insurer. Also, an agent with experience in your industry understands the particular risks your business might face. If you're not an expert in liability insurance, finding an agent is a great idea.

Why You Need Insurance

A Richmond business liability insurance agent can also tell you why, exactly, you need to purchase liability coverage and property insurance. Some Richmond, Virginia businesses might be tempted to skip out on Richmond business liability insurance, as it's quite costly. However, purchasing coverage for your Virginia company is absolutely essential.

You need to protect the liability of your Richmond company. If you don't, a lawsuit could land you in serious trouble. Consider the costs of Virginia attorneys, not to mention the damages or settlement! These costs could put your company in debt, or end work entirely. It's important that you don't underestimate the expense of legal fees.

Insuring your liability is essential, and so is insuring your property. If a fire or natural disaster destroys your building, you need to have a secure policy in place to keep you going. Also, if you have valuable assets, you need to insure those as well. While natural disasters and burglaries are unlikely, they do happen.

Not purchasing property and Richmond business liability insurance could lead to the detriment of your company. Accidents happen. And, disgruntled clients bring lawsuits against companies all the time. Remember, even a meritless lawsuit can be extremely expensive for your company.

If you're holding back because the cost of insuring your company seems to high, consider the cost of not insuring your company. It is much, much higher! If you believe that you absolutely can't insure your company, you may want to talk to an agent before settling on your decision.

Also, while Richmond business liability insurance is expensive, you may be able to find a good package deal. If you carefully research the quotes offered by various insurers, and ask your agent for help. You may find it's affordable than you expected, and it's tax deductible. Also, you can take certain safety precautions to help you reduce your rates.

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