No doubt, 2020 will remain in history as the year when the world came to a standstill. Coronavirus has caused havoc. In addition to the pandemic’s significant impact on the healthcare system, it has also disrupted the business world in the US and worldwide.
And, it’s not just companies facing disruptions; schools and churches have also been closed. And while no one knows when the pandemic will end, business owners are left wondering how to survive these uncertain times.
Luckily, you can protect your business and keep it running by having the right insurance coverage in place. Read on to learn why you need General Liability insurance for your business now more than ever.
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What is General Liability insurance?
If you are like many small business owners, you spend a lot of time thinking about how you can minimize the costs of running your business. More so when it comes to choosing the kind of insurance right for your company.
However, contrary to what half of the small business owners believe, General Liability insurance is not a luxury. In all likelihood, it could potentially save your business from collapse if your company is sued due to property damage or for bodily injuries.
Insurance is designed for you to pass the financial risk onto another party. You want your insurance to come to your aid if you’re faced with third-party claims and lawsuits. For instance, if a customer slips on the floor of your business premises and suffers injuries. If they decide to sue your company, General Liability insurance will protect you and your business by paying the associated lawsuit fees and medical bills.
Can you buy insurance during the Covid-19 pandemic?
Yes, you can. Many small business owners in the US are taking this time to prepare their businesses for the future. This is the time to purchase insurance for the first time or assess whether you have enough insurance coverage. To be underinsured is almost as bad as not having insurance. Your insurer may only pay a portion of the claim or, worse yet, they may deny the claim and void your policy.
If you are lucky enough to still be trading over this turbulent time, your business is still vulnerable to the same risks that General Liability protects you from. You should have your coverage regularly.
Insurance that offers so much more
However, small businesses’ General Liability insurance goes beyond providing coverage against property damage and customer injury. It affords other coverage too:
- Legal fees
- Compensatory damages
- Punitive damages
- Non-monetary loses
5 Reasons to Invest in Insurance
You’ve probably heard time and again that small business owners need to buy General Liability insurance. But have you asked yourself why?
As your business grows, so will the risks. General Liability insurance will help protect your business from these risks. Here are five reasons why you need to invest in this insurance for your business small.
1. You operate your business from a leased property
General Liability insurance will come in handy if you use third-party locations for your business activities. Repairs to third-party property damages caused by you or your employees can be costly.
Without a liability policy in place, these costs can bring your business to its knees. Sometimes, even your personal finances may be at risk if your company cannot raise these costs.
Fortunately, your General Liability insurance will cover these costs and any legal fees if the landlord decides to sue your business.
2. You have physical contact with clients
Cases of customer injuries in businesses are not uncommon. When customers visit your place of work, accidents can happen, and you might be held liable.
As such, you’ll be required to pay for their medical fees and any other related costs. In this instance, your liability insurance will cover physical injuries suffered by your customers or visitors. Of course, Covid-19 has reduced the number of these claims over the last months, but we can’t rule out this risk going forward.
3. You advertise your business
Your business is at risk of infringement claims if you market your business by advertising. For instance, you may be accused of using slogans that are under copyright.
General Liability insurance will cover costs associated with copyright infringement claims. Whether it is investigation costs, legal fees, or even settlement claims, this policy will come in handy.
4. You’re responsible for a customer’s property
General Liability will also come to your rescue if a client’s property is damaged at your workplace. Costs associated with repairing or replacing a customer’s damaged property can add up very quickly, reaching a point where they affect your regular business operations
5. It may be a requirement to qualify for certain projects
You may not have considered this, but having General Liability insurance can make your company look more credible. You may even be disqualified from contracts if you don’t have this insurance. More than ever, organizations and government agencies want to work with companies that can guarantee the safety of their security and assets.
Holding this insurance will not only make you look credible but will put you ahead of your competitors. Clients like assurance that your work on their project will not be delayed if the unexpected happens, and your company is covered for this.
So, what does General Liability insurance not cover?
Having read this far, you are no doubt considering General Liability for your small business. If that’s the case, you may be wondering what is not covered by this policy. Coverage is not extended to:
- Commercial vehicle accidents
- Errors and omissions claim
- Damage to business property you own
- Claims that exceed your policy limit
Invest in the best insurance for your business
As you can see, there are numerous reasons you need small business General Liability insurance now more than ever. While buying it will cost your business some extra cash, the protection that comes with it is worth it.
If you’re unsure how to choose the right insurance policy for your small business, ask your insurance agent to help.