Why You Need Business Liability Insurance

When your business plan comes together, you may feel like it is a dream come true. As a business owner, the reality is that living your dream will take constant work and constant determination. There will always be things that happen beyond your control that may affect your company. This can be anything from market conditions, to issues finding employees, to unforeseen problems with a product. If you want to protect yourself as well as possible from the unseen, it is a good idea to get business liability insurance. Here are a few reasons why you need business liability coverage.

 
You can’t work without it
All states will have rules and regulations about opening up a business. In order to legally operate in your state, you will need to have a tax identification number, file your articles of incorporation with the secretary of state, and have the appropriate licenses for your company. You will also be required to have the appropriate amount of business liability insurance. If you skip any of these steps, you may not be allowed to operate in the company and will receive hefty personal and business fines for doing so. Before you open your doors, you should apply for and receive business liability insurance that meets your states standards.

 
You need to protect yourself and your employees
Protecting yourself and your employees is the number one reason why you need to get business liability. Liability insurance for your business can handle issues such as an employee getting hurt and needing to file a worker’s compensation claim. You will also need to provide unemployment coverage in the event of laying off employees and dealing with unemployment claims. If you want to stop your business from going bankrupt, you will need to have the necessary coverage for claims that happen against your company.

 
Natural disasters happen in all areas
Property damage has put a lot of companies out of business. While watching natural disasters destroy towns may seem like something that mostly happens far away, a weather pattern hitting your town could cause devastation for your family, neighbors, and your business. Having your products covered is an excellent way to know that you can rebuild, even when you experience major business loss. Business liability can help rebuild if you experience loss of products or loss of business under a wide umbrella of issues.

 
Product issues can cause a headache out of your control
The old saying “if something can go wrong, it will” was never truer than when you need everything to go right. A problem happening with a product can lead to a massive recall, customer issues, and a PR nightmare if it gets out of hand. One thing that you can have on your side in the event of product malfunctions is business coverage to help cover any claims. Having to come out-of-pocket for claims for defective or destructive products is enough to bankrupt even the largest of businesses. This is one of the reasons why having enough liability coverage can keep you up and running.

 
Premiums are less than claims
Just as paying for full coverage auto insurance per month is cheaper than having to replace a new vehicle in the event of loss, paying the monthly premiums on your business liability coverage is less than coming out-of-pocket for issues if they occur. It is smart business to have business liability insurance, especially for new companies that are still having to watch every penny in order to remain in the black for the financial year. Getting business coverage is smart business sense and will keep you from having to worry about every problem alone as they arise.

Margaret Wilson

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