Are you planning to start a business? Well, then try to learn more about the general liability insurance and what it is all about and what does it mean. It is essential that you learn about the general liability insurance and what it actually means and how is it important.
Liability insurance actually protects a company, its assets, the employees, etc. It also covers any legal defense for any settlement is case one is sued. It will cover any nonmonetary losses, compensatory damages as well as the punitive damages. It can also protect you against any liability if there is any damage to a rented property by you. It also covers claims of false advertising and copyright infringement. Does your business need liability insurance? Well, read on to find out.
We live in a litigious society and thus, it becomes essential to protect and cover your business. Depending on your business and the coverage needs, the annual premiums can range from $750 to $2,000. Well, these are reasonable and affordable costs and much less than those thousands of dollars that you might be spending otherwise fighting legal cases in court.
One can buy liability insurance as separate or cover it under the BOP or Business Owner’s Policy. If you already have a BOP, see it includes liability insurance and what is the limit. In case it is low, as compared to your business needs, you may need to buy more. How will you come to know if you need more of the liability insurance? Well, the kind of business and the risk associated with it will define the coverage limit. For example, a consultant will need lower coverage as compared to a building contractor. One can get BOP combining general liability and property insurance at a cost-effective rates,
Check out the rules and regulations pertaining to liability insurance in your state or country as your business location too will have a role to play. Some states award more in damages to plaintiffs as compared to others. Sometimes, you may be running the business in some other state. You need to consider this coverage if the clients visit your place or you or your employees visit a client’s place of work or make use of any third-party for any business activities.
It is essential to talk to a reputed insurance broker to get the right advice on liability insurance before just rushing in. sit with him and discuss all aspects of your business in details and the risks that ensue.