Posts Tagged ‘liability insurance’
Liability Insurance: A Must for Small Businesses
Friday, January 18th, 2008
Liability insurance coverage is vital for all small businesses. Operating any type of business without appropriate and sufficient insurance coverage is a serious error in judgment that can have dire financial consequences for both the organization and its owners. The peace of mind that comes from knowing that you are protected from lawsuits is well worth the small price of liability insurance premiums.
Liability insurance protects companies in the event they are sued by customers or employees asserting that the actions of the organization caused harm to them. Some small business owners feel that there is no way they will ever face such a claim, and so choose not to properly insure themselves against liability.
However, it’s a fact that all businesses, no matter how small, are at risk for litigation. If a customer or employee alleges that the business is responsible for a loss or injury, the business owner can find him or herself facing expensive litigation, regardless of responsibility.
It’s a mistake to think that you can’t be ordered to pay legal claims if your company isn’t yet profitable. In the event the allegations are determined to be true and damages are awarded, you can be held personally liable, ordered to make installment payments, and even have to deal with garnishments and liens against personal property or future earnings. Facing even one liability claim without proper insurance can be devastating for a small business.
Fortunately, small business insurance is an inexpensive way to protect your personal and business assets from the threat of lawsuits. No matter how new or small your business is, you absolutely cannot afford to go without a good liability insurance policy. The protection afforded by proper coverage is a priceless asset. Getting the insurance coverage you need will cost you only a few dollars each week. Failure to protect yourself adequately can cost you your business and personal assets.
Tags: advice, Carrie Hinkel, insurance, liability insurance, protecting your business, small business insurance
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