As a small or medium-sized enterprise (SME) owner, you are under a lot of pressure to get your business up and running to reach the next level. You are working hard to provide quality services or products to your customers. This is the time one should remember Murphy’s Law and remember that when unfortunate events happen you must carry on and be assured your business plan and budget are ready to tackle such events. Let’s talk about Business Liability Insurance and how it is important for your business. You may be concerned about Business Liability Insurance costs, but be assured that having Business Liability Insurance will be one of the best business decisions ever.
What is Business Liability Insurance?
Business Liability Insurance is third party insurance where the monetary damages are paid to outsiders who file claims against the insured business or business owners. This insurance usually covers the cost of legal fees if there is a law suit involved, and can include bodily injury and property damage costs if your business is held legally responsible for these costs. Business Liability Insurance costs are generally reasonable, and you can compare companies to get the best policy coverage to suit your business and your budget.
Interesting Fact: In 2011, a plaintiff named Lauren R. was hit by an automobile while she was walking along a rural highway “with heavy traffic and no sidewalks”. It was understandable that she sued the driver but what was interesting was she also sued Google alleging the search engine giant failed to warn her about the risks of the highway as she was using Google Maps at the time. This goes to show how people can file an unexpected legal complaint.
Benefits of Business Liability Insurance:
Now that you know some facts about Business Liability Insurance, we can move on to the various benefits to SME owners.
- Lawsuits: There can be unusual cases like the one mentioned above or serious lawsuits in which you might be found at fault. Whatever the court ruling, you may be liable to pay for many things, like the attorney’s bill and other costs. In the aforementioned case, Google wasn’t found to be liable but it still had to pay the lawyer’s bills. It might not matter to a billion dollar empire, but it could be a serious concern for an SME. So, whatever the Business Liability Insurance cost, it will definitely be less than the various curve balls life can throw at your enterprise.
- Professionalism: This is important at any business level. When a new customer comes in knowing you are properly insured with business liability insurance, the customer would think of you as a real professional.
- Business Money: If a lawsuit is filed against your business due to your own mistake, it is going to cost. However, if you have Business Liability Insurance, the coverage would put your mind at ease. Your insurance would limit the amount of business funds that would be needed to settle the law suit so you may not have to dip into your business earnings.
These are many benefits of having Business Liability Insurance. All in all, you should have coverage to stay ahead of the uncertainties that sometimes face your business. Business Liability Insurance becomes very important to an SME owner. The sooner you realize the importance of Business Liability Insurance plays to manage mishaps and lawsuits, the better for you and your business.