Why do I Need Business Liability Insurance?

If business liability insurance did not seem so expensive to you, you probably would not ask yourself this question. As a business owner, you know that a lot of the money you invest in your business everyday goes to expenses you wish were lower. This way you could expand your company or hire more employees. Maybe you could even take some time off for a change.

The reality is you may have to carry some degree of business liability insurance in accordance with local laws. This varies among locations and business types. Certain businesses incur more risks during their everyday operations than others. This dictates the amounts of how much business liability insurance they need to carry and the amount that will be needed to cover that insurance.

What Will Business Liability Insurance Do?

The main thing to remember is that what business liability insurance is designed to do is to cover you in case someone is injured on your company’s premises. It will cover not just medical expenses you may be found to be responsible for; it will also cover legal costs if the injured party were to file a lawsuit. This type of insurance can also cover you for workmen’s compensation, negligence or claims of slander or libel.

Even though you are sure you operate your company in the safest manner possible, and even though you are sure you operate your company in such a way that no one would possibly have reason to sue, you still need liability coverage. The fact is that even though your company is operating in perfect order, there are a lot of risks your company assumes doing business each day with the general public. Unfortunately, even in the safest of places accidents and injuries can happen.

When you have a business to run, you have a reputation to uphold. That reputation can truly make or break your company. You cannot risk having inadequate coverage in the event a person, either a member of the general public or an employee, gets injured on your company’s premises. This is not just because of the expense of covering such an incident.

If something like that were to happen and that person or now former employee decided to sue because you could not or did not cover their expenses, imagine what that would do to your company image? It would not matter that you simply could not afford to cover those expenses, even though you wanted or intended to. Your company image would be badly damaged.

Basically, business liability insurance covers you in an incident such as that. It also protects you against competing companies who may be accusing your advertising campaign of putting their company down in order to lure customers. Instead of having to deal with the unfairness of such a situation, business liability insurance could help cover the costs of paying for claims of slander or libel. Your company’s reputation would be saved.

Is Good Coverage Expensive?

You do not want to spend a lot of money on insurance, yet you do not want to do without adequate coverage. If you do, you can risk so much of your business’s reputation and, in that regard, its revenue-earning power. The ironic thing about having the best business liability insurance you can get is that it can actually save you money over time. If you consider the examples above, you know why you need business liability insurance. Either certain amounts are required for your business by law, or they are required for your business’s well being now and in the future.

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