Small service companies are more likely to face a lawsuit than manufacturing plants. This is a common myth among companies that are based in offices. In today’s complex and dynamic business environment, small and large businesses, whether they are office-based or physically-labor-intensive, are equally vulnerable to different claims.
In general, Commercial Liability Insurance covers four types of claims: bodily injury (libel, slander, or property damage), personal injury (libel, slander, or advertising injury), and property damage. Commercial liability insurance is often very affordable. However, it may not cover the costs associated with defending claims. The company may have to cover the costs if it does not have enough commercial liability insurance. It could lead to financial difficulties or even bankruptcy. Commercial Liability Insurance covers all damages, legal costs, and settlement expenses up to the policy limits.
Commercial liability insurance is required for all business owners, including financial planners, medical offices, architects, and engineers. Many business owners choose to forgo liability insurance in an attempt to reduce operating costs. This may save the business money on insurance premiums but exposes it to legal costs and damages in the event that the business is found at fault.
There are several ways for small business owners to lower their insurance costs.
- Browse : Coverages for business liability insurance differ by company. Learn what is covered and what is not. Compare and contrast the policies of multiple insurance companies.
- Consider purchasing insurance policies from the same company instead of different ones. It will reduce the need for duplication and you may even get a special rate on bundled policies.
- Get insurance that is tailored to your small business. An insurance broker can advise you where to get the best prices and what coverages to choose.
Insurance is sometimes a necessity. Federal and state laws require certain businesses to carry liability insurance. Workers’ Compensation is another name for this insurance. In some states, auto insurance is also required. This insurance protects employees and vehicles owned by the company. This insurance also covers personal vehicles against damage, theft or injury.
Business owners can purchase optional coverages tailored to their industry. Many products and services are available to be used with Office-Based Commercial Liability Insurance. They include:
- Director and Officers – This covers directors or officers against claims of negligence in their role as director or officer.
- Professional negligence and errors in professional work are protected for individuals and organizations.
- The umbrella/excess liability policy provides additional coverage in the event that an insurance policy’s limits are exceeded.
Additional coverages can be added to your policy and tailored to meet your needs. Some small business owners do not want to spend the extra money on Commercial Liability Insurance. It’s a great way to start. A professional can help you decide the best policy for your small company.