During the course of mapping out your small business, be sure you account for the insurance coverage you need to protect your organization, the investment you’ve made in it as well as your future peace of mind. Specifically, it’s vital you have liability insurance for true small business success, as you may have seen pointed out on lists of tips for small businesses. Learn why this type of coverage is so essential.
Hope for the Best, Insure Against the Worst
Being the owner of a business of any size requires a great deal of your concentration and mental faculties, and there may be some items that slip through the cracks, cracks that can become literal and trip up or otherwise cause injury to customers. Your accidental negligence could see you hit with a lawsuit, the cost of which could easily drain you dry if you don’t have liability insurance.
Specifically, liability insurance consists of such coverage as tenants legal liability, bodily injury/property damage liability, medical payments and personal injury liability. Small business success is all about mitigating risk and maximizing success, which liability coverage helps you do.
Pretend Coverage Is Mandatory
As you’re going over your business budget, you’re likely looking for areas where you can cut costs. Before putting insurance policies you don’t legally have to have on the chopping block, think about what you stand to lose. A lawsuit settlement resulting from a negligence accident averages out to $20,000, all of which comes out of your pocket and assets if you aren’t insured. That single oversight could not only put you out of business, but clear out your personal finances, as well.
Keep Up With Your Most Current Coverage Needs
Another major part of small business success is taking note of how your business changes and grows over the years, which is sure to impact your insurance needs. Once you and your business are covered, keep in touch with your insurance provider whenever your company goes through both major and minor changes. For instance, if you’ve added to or subtracted from your employee pool, changed the products or services your company offers or switched the physical location of your business, be sure to let your agent know.
It’s also a great idea to sit down with your agent at least once a year to go over your liability policy and any other commercial insurance plans you have to see if there are areas where you can save. Don’t be afraid to ask for a discount for being a loyal customer or inquire about specials you and your business may qualify for.
Peace of Mind for Everyone
If you rent or lease space for your small business, your landlord may require that you have liability coverage, which can speed things up when it comes to starting your business and seeing it grow. One essential aspect of small business success is being well-prepared and showing you’re among the best in your industry, which is just as essential for the company or individual you rent your space from as it is your customers and target audience.
Don’t leave yourself open to common commercial vulnerabilities. Set yourself up for small business success by securing liability insurance and following other tips for small businesses.