One reason some small businesses have survived the roller-coaster economy is that the owners were forward-thinking enough to protect their assets with small business liability insurance. Here are some of the ways this coverage helps them manage unforeseen incidents.
Protects From Lawsuits
Those new to running a company are often naive to the possibility of lawsuits. Unfortunately, being sued is a commonplace occurrence that can bankrupt a small business if it is not prepared to go to court. Liability insurance covers the following expenses, no matter how legitimate or frivolous the legal claims may be:
- Court costs
- Witness fees
- Legal representation
- Police report costs
- Lost income while in court
Covers Personal Injury and Property Damage
While health and property insurance reimburse you for medical bills and damages to your own possessions, a commercial liability policy is what you need to cover injuries and accidents that affect other people on your property. For example, if a client slips and falls in your waiting room, the expenses could be devastating without the protection of liability insurance.
Establishing a small business requires a lot of money upfront and a carefully managed budget thereafter. By investing in commercial liability insurance, you will not be surprised by large expenses that you otherwise could not afford to pay.