Small businesses start with great enthusiasm and continue to grow at a steady pace, but a small mishap such as getting a lawsuit or property damage can cause the growth rate to slow down significantly. To ensure that you do not suffer badly in the event of an accident, you need liability insurance,
Liability insurance can protect you and your business from loss or damage, which can be caused by a lawsuit, injury, medical expenses or a burglary. This can also provide protection against litigation costs if you need to defend yourself in court.
It is one of the most important and integral parts of all small business insurance. However, it is not always easy to determine if your business has enough coverage for an accident. Let̵7;s dive deeper and check out the type of coverage and amount that is best suited for small businesses:
Types of business insurance:
- General liability insurance: This is the basic policy that covers your company from damages or personal injury claims.
- Commercial car: Cover you and employees when you drive to work if the damage is caused to your place of business, someone’s car or personal property such as a fence or mailbox.
- Professional responsibility: Lawsuits that arise due to mistakes or errors caused by your company will be addressed in this policy. This usually covers the costs of the proceedings.
- Employee compensation: If Workers become ill or injured while working, their death benefits, lost wages and invalidity benefits are provided by this policy.
- Commercial umbrella: It expands the liability coverage of a small company. If the damage costs more than what your general liability insurance covers, the umbrella insurance covers the rest.
How much coverage is offered in a general liability insurance?
Coverage amounts vary and can be as low as $ 100,000 (or even lower) and as high as $ 1 million. This depends on your specific needs and especially on your industry. Corporate industries with higher risks such as medicine, law, accounting and consulting attract larger losses, usually in the form of lawsuits, so for them a higher amount of coverage is more appropriate.
However, you will not receive any extra payment above your coverage limit. This means that if your business suffers a loss of $ 500,000, but your coverage amount is only $ 300,000, you will pay the remaining $ 200,000 out of pocket. However, this will not happen if you get one Umbrella Liability Policy in addition to your general commercial liability insurance. This is because the additional $ 200,000 will be covered by the umbrella insurance – it picks up where your basic policy ends.
Paradiso Insurance can help:
If you have a fairly basic coverage for small businesses or have no coverage at all, you need an expert to help you get the best deal for maximum protection.
Feel free to contact us at Paradiso Insurance. We can help you find out which type of insurance is right for your company and give you a free quote.