Small business owners tend to be optimistic and therefore often underestimate the amount of insurance they need. Accidents happen. There is always the possibility that someone could get hurt due to negligence on your part or that of one of your employees. Even if you take measures to keep your physical property safe, you never know when something unexpected might happen. This is why you always need some form of professional liability insurance so that your business is financially prepared.
GL (general liability) insurance is coverage that will protect you and your organization against a variety of claims, such as physical injury, property damage, medical payments, finished products, and almost any other reason someone might try to file a lawsuit against your Company.
This type of insurance only covers damages and injuries to third parties. It doesn’t really cover anything that could happen to you or one of your employees. GL insurance covers the basic risks that affect almost all businesses, regardless of industry. Even if your business is primarily online, your home insurance provider will likely want to know if you do business from your home and may want you to get additional coverage because of it.
Many businesses opt for additional coverage beyond what professional liability insurance provides. Different industries have specific needs. Heavy outdoor work such as construction will require protection and workers’ compensation for employees who can easily be injured. Indoor advertising and marketing agencies will require protection from copyright infringement charges. Web designers and programmers can be accused of stealing code. Freelance journalists can be accused of defamation.
Professional liability insurance for property damage
Property damage can come in many forms, and not just the physical premise on which your business stands. What about the facility where your electronic data is stored? What if one of your computers gets a virus? Electronic data protection is worth looking into.
What you need to do is check with commercial insurance providers to see if they offer tailored packages for the type of business you are involved in. There is no one size fits all, so the best thing to do is to apply for insurance to suit as many of your industry and business specific needs as possible.
The cost of general liability coverage varies by state, industry, business size, and the amount of coverage you need. The insurance companies hand out calculators and free estimates on their websites. Simply enter your occupation and state to get an overview of what types of coverage are available to you.
Hiscox Business Insurance is a good place that is often recommended as a starting point for companies looking for business liability insurance. Get a free estimate and look over all the industry-specific insurance packages.