A Guide To Cheap Business Liability Insurance

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A Guide To Cheap Business Liability Insurance

Insurance Author: Admin


Cheap business liability insurance has been a choice for every business try to insure their liability. The purpose of this article is to provide detailed information on cheap business liability insurance for small business owners.

Owning and operating a small business comes with plenty of responsibility and accountability. Even if you operate with the utmost care and provide the best quality and services. Is your business protected with liability insurance?

Here is your guide to cheap business liability insurance.

What is Business Liability Insurance?

Business liability insurance protects your small business in the event of a lawsuit for personal injury or property damages. It will usually cover the damages from a lawsuit along with the legal costs. It also protects the business owner from property damages that are caused by the employees. Depending on your business needs, liability insurancecan be purchased in many forms.

Liability insurance for small business is a necessity in today’s society. This kind ofinsurance protects small business from lawsuits involving any bodily injuries that took place within the premises of the business to customers, vendors, visitors, or employees and injuries sustained that were the results of actions or negligence of the business’s employees.

When buying liability insurance, you can purchase either an “occurrence policy” or a “claims-made policy.” An occurrence policy can cover claims made months or even years after the incident has occurred. The insurance company is obligated to review, and if warranted, pay for any claims made resulting from an incident that took place during the coverage period, even if the claim is reported at a later date. The more commonly used “claims-made policy” provides protection only while the policy is in force and claims are made during that time frame. Prior-act coverage may also be included; indicating that acts occurring within a specific time period (prior-act coverage period) will also be covered. Claims-made premiums are generally lower than occurrence policies.

Many business liability insurance packages offered will cover your basic insurance needs. However, it’s strongly advisable that you read the fine print carefully, to make sure there are no gaps where you specifically need coverage.

It is typically necessary for owners of small businesses to get their own insurance. One would never know what could happen to their business.

Types of Business Liability Insurance

General Liability Insurance

This form of business liability insurance is the main coverage to protect your business from: injury claims, property damages, and advertising claims.

It has been part of the large liability insurance for small business package. General liability insurance also known as Commercial General Liability (CGL) may be the only type of business liability insurance you need depending on your business situation.

Professional Liability Insurance

It protects the professionals from claims that were personally made against them for the mistakes or errors that they apparently made while they were performing their duties. Business owners providing services will need to consider having professional liability insurance known as errors and omissions.

This coverage protects your business against malpractice, errors, negligence and omissions. Depending on your profession, it may be a legal requirement to carry such a policy. Doctors require coverage to practice in certain states. Technology consultants often need coverage in independent contractor work arrangements. Its a good form of cheap business liability insurance.

Product Liability Insurance

Small businesses selling or manufacturing products should be protected in the event of a person becoming injured as a result of using the product.

The coverage protects the business owner from items that have been manufactured or developed by the company that was responsible for an injury, death, or accident of a person. The amount of coverage and the level of risk depend on your business type.

Tips for Small Business Liability Insurance

The costs of covering your business and yourself from a potential lawsuit are high.

Every business owner renewing an existing policy or starting a new policy needs to shop for the best business liability insurance rates and coverage.

Here are some tips you need to consider:

  • Compare coverage: The extent of business liability coverage varies from insurer to insurer. Consider if and how much legal fees are covered. Review the policy details to know what is included and excluded in the coverage.
  • Assess your Industry’s Settlements: To gain a better perspective of the amount of coverage your small business needs, take a look at your industry. Review the recent legal actions and settlements in your field. Talk to peers and find their level of coverage. Using your peer feedback and industry research, determine the average legal costs and settlement to set your coverage limits.
  • Get the Package Deal: Purchasing separate types of business insurance from various insurers can quickly escalate your premiums. Depending on your business situation, it can make sense to buy a package of policies such as Business Owners Policy (BOP) to cover your business and save on rates. Be very sure to understand the extent of coverage of the package. Not every type of insurance falls under a BOP. A business professional will often require a separate errors & omissions coverage.
  • Find a Specialist Broker: Your business and industry has unique needs and risks. To get the best available coverage and rates, consider working with an insurance broker who knows your business and has experience in your industry

Protecting your small business from risks is the foundation of success. Take the necessary time to investigate your business liability insurance needs with an insurance representative, your industry association, and peers. It could be the most important decision to your company’s survival.