Small business owners often overlook liability insurance, and that could be a costly mistake. Putting off this important coverage thinking it doesn’t matter that much is sometimes the wrong decision. In the best case, you’ll never need it, but it can just as easily turn into a very costly mistake. Liability insurance is vital to protect the financial health of your business. Just one mistake leading to a lawsuit can ruin all that you have built.
Don’t make a snap decision that you don’t need liability insurance. It doesn’t hurt to look at these different types of coverages and then decide.
Professional Liability insurance for protection against lawsuits having to do with error or negligent acts while performing services is something accountants, or architects often use. Even if your profession is not specifically covered, there are general liability policies that can cover most fields.
As a business owner, you should have protection from employees or former employees suing over things like wrongful termination, harassment or discrimination and other things having to do with human resources, employment Practices Liability Insurance covers in these cases. Also, you are ultimately responsible for the actions of employees while acting on behalf of the business, so even if you have the best internal policies and procedures, things can go wrong. That’s why this coverage is a must have.
Umbrella Liability Insurance can offer protection for a variety of situations. When you decide to get Liability insurance the next thing to figure out is how much coverage to get. It may take a little research but it’s well worth the effort. Find out how much the average lawsuits in your filed settled for. You can use that as a good baseline when figuring out how much coverage you need.
For the best deal, it’s always good to shop around for a good broker and get more than one quote. The most important thing is to get covered as soon as you can, you’ll be glad you did if you ever need it.