Will Liability Insurance Protect Your Business When You Need It Most?
<a href="http://contractors-liability-insurance.org/">General Liability Insurance</a> protects businesses from lawsuits and claims made against the company by plaintiffs.
General liability insurance, along with a few other types of policies, are an important consideration, even if your company is a one-person business. Liability insurance can save your company in the event you lose or have to settle a property damage lawsuit or personal injury claim. Even if you're found not labile, legal defense fees can be costly, and this policy will cover those costs.
You can buy general liability from an insurance agent or broker, or you can get quotes online. However, be aware that this is not the only type of coverage you may need. In addition, you should ask about professional liability insurance as well as worker's compensation and commercial property policies.
The three most important aspects of any commercial liability insurance policy are as follows:
1. Limits The limit of a general liability policy refers to the maximum amount the insurance company will pay out. It's important to get the right amount of coverage for your business based on it's specific risks. If you buy a policy with a $1 Million limit and you lose a suit for $1.2 Million, you'd be responsible for paying the other $200,000. That would bankrupt many small businesses. Businesses with risk beyond their policy limits should consider an umbrella policy which is usually a cost effective way to cover additional risk. The best way to determine how much risk your business has is to sit down with an insurance broker.
2. Exclusions Exclusions in liability insurance policies are simply things that are not covered. Obviously, it is important to find out if your policy has any exclusions before you purchase. Some examples to be on the lookout for include things such as intentional injury, acts of war, and breach of contract. Many times, additional policies can protect you from things not included in your general liability insurance.
3. Deductibles Deductibles are the part of any claim that you pay out of pocket before the insurance company. Most general liability insurance policies have no deductible, but you are a small business with minimal risk, you can cut the cost of your insurance by requesting a deductible. Just be sure it is an amount you can easily pay in the event of a claim.
General liability insurance costs have been on the rise as of late, perhaps due to the number of lawsuits brought against companies. Unfortunately, many individuals have the perception that all businesses from corporations to LLC's to sole proprietors have deep pockets, but as a small business owner you know otherwise. That's why it is so important to protect yourself and your business with liability insurance.
About the Author
General Liability Insurance protects businesses from unfavorable judgements and settlements for injury and property damage. But do you know three most important elements of your business liability policy. Click here to find out what they are: http://contractors-liability-insurance.org/
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