Business liability insurance offers protection to a business owner in case of a third-party claim or a formal lawsuit. Coverage comprises of financial liability incurred along with the costs related to the company’s legal defense. There are three kinds of business liability insurance: professional liability insurance, general liability insurance and product liability insurance.
Any kind of ownership, in a small business or a bigger one, especially a partnership or sole proprietorship places one’s personal finances at risk, especially in case of a business-related lawsuit. Even those working under Limited Liability Corporation still stand exposed to personal risk. The aim of business liability insurance offers better protection as it is based on a legal structure. Just make sure that when you get additional insurance, unnecessary coverage.
Business liability insurance offers you complete protection from the unforeseen and unknown. After all, accidents can happen anywhere, anytime ad the day-to-day uncertainties are always there. Mishaps can occur on site, off site, with business owners, employees and the customers. No matter how much you’ve planned and are prepared, one cannot be 100% sure of safety when running the business. This insurance cover will help take care of attorney fees, cover medical expenses and any other damages that one is legally held responsible for. You will get protection against scenarios that never even crossed your mind.
The Average Costs of Business Liability Insurance
There is no specific answer to the questions as every business and its insurance needs are going to be different. If you have a small office and have little or almost nil exposures to risks, an average amount of coverage can somewhere around $500 a year. However, if your business is about physical labor like roofing or carpentry, the costs can go as high as $2,000 a year. US government expects those in business of computer programs to pay over $10,000. Those dealing with radioactive waste disposal, pay well over $100,000. Thus, the higher the risks in a business, the higher will be the premiums.
However, these are just rough estimates as there are a number of other factors and aspects that work behind calculating the costs of the business liability insurance. The deductibles, location of business, coverage limits, etc. can all impact the policy’s premium along with the kind of work involved in the business.
Make some comparisons and get insurance quotes before driving to some conclusions about getting the liability insurance for your business.