Small Business General Liability Insurance Discussed
July 27th, 2010 | Author: weissheiss
As much as 80% of all American businesses are formed as sole proprietorships or partnerships. This leaves the owners of these businesses personally liable for damages that may occur and potential lawsuits from these damages. Even if a company is formed as a corporation of any kind, the owner or owners can still be held personally liable. Therefore, small business general liability insurance is necessary to not only protect the company, but the owners of that company as well. Not only is coverage required by law in many states, it’s also essential to making sure that everything you have worked so hard to create is protected.
There are several types of business liability coverage, (professional liability, products liability, etc.), but general liability is necessary for all businesses. It provides protection for your company should it ever be sued for any reason. A business general liability insurance policy provides coverage for not only your legal defense costs, but also for damages stemming from losing a lawsuit.
Determining the limits of your coverage is not always easy to do, and soliciting the expertise of an insurance professional is always a good idea. The chances of a lawsuit occurring in the industry in which your business operates, the amount of employees you have, the value of your business and personal assets, and your business history are all major factors. As a general rule, opting for more coverage whenever you’re in doubt is always a good idea. The added expense for more coverage is often not a lot and adequate protection is invaluable. It’s always better to have more coverage than you need, than not enough coverage.
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