Now that you have plans in place to start your business, you are wondering what type of insurance plan that you will need to follow government regulations. Business insurance is completely customizable to the specific needs of your business. This includes business liability insurance coverage. It also includes commercial property insurance and business income insurance.
In 2018, only 54% of business owners had general liability insurance. Only 42% of business owners had a Business Owner’s Policy (BOP) in place. The decrease seems to have been a result of increasing insurance pricing. Yet, you will still need certain types of insurance to make sure your business is covered. Insurance claims will inevitably crop up at some point. The good news is that there are still low cost, high coverage policies available when you work with the right agent.
Continue reading to learn everything you need to know about business liability insurance.
What Is Business Liability Insurance?
Business liability insurance, or commercial general liability insurance, refers to a type of insurance that business owners have to protect against claims brought against the business. Business liability insurance covers:
- Bodily injury
- Property damage
- Medical expenses
- Cost of litigation
- Product injury
- Personal/advertising injury
Professional liability insurance, or emissions and omissions insurance, protects your business from claims where your customers sue for the business’s alleged negligent behavior during the time of business. This type of insurance policy covers economic/ financial losses rather than bodily injury and property damages.
A business liability insurance policy may not be enough coverage for your business. You may find that you also need other types of insurance. This might include:
- Commercial property insurance
- Business income insurance
- Data breach insurance
- Commercial umbrella insurance
- Commercial auto insurance
Generally, every small business should have business liability insurance in place. The type of policies that you will have in addition to that will depend on the specific needs of your business. The combination that works for your industry may not work for another. The different types of insurance work together as a Business Owner’s Policy (BOP).
Why Do I Need Business Liability Insurance?
A business owner who has the potential to cause bodily injury or property damage to a customer or their possessions, needs business liability insurance. If your business stands to be sued for large amounts of money, you need to have liability insurance. Having a policy in place will help you to minimize the impact of these events that may occur.
Businesses that don’t have the proper insurance coverage may stand to pay out all these costs at the business owner’s expense. This type of financial strain may ruin your business.
Business liability insurance protects your business’s physical assets. It helps prevents action against your personal assets. It may also help to cover the cost of litigation (even if you aren’t held liable in the claim!).
The benefits of business liability insurance extend to more than protecting your business.
It Opens You Up to a Larger Clientele
Clients don’t want to be responsible for the possible mistakes or liability claims of others. This includes mistakes that their manufacturers or partners might make. Your potential clients are automatically looking for a business that handles their own actions. They like to know that you can resolve any potential liability claim with their own financial standing or insurance policies.
It Keeps Your Head Above Water (When Claims Arise)
Having business liability insurance allows you to expect the unexpected. When claims of liability do arise, you can rest easy knowing that you don’t have to pay out-of-pocket for legal expenses or settlements. When businesses don’t have enough coverage, they may fall into financial ruin.
It Shows That You Are Serious About Your Business
Having liability insurance isn’t a cheap investment so when you have it, you are telling your clients that you are willing to take the responsibility for anything that goes wrong with your business. It helps you to prove that you are an established business with what it takes to be successful.
Requirements for Arizona
Arizona requires small businesses to have workers’ compensation insurance and commercial auto insurance because accidents happen. Whether an employee gets injured on the job or an employee is in a car accident while driving for business purposes, they need to be covered.
While business liability insurance isn’t required, it is definitely recommended. The combination of insurance that you purchase for your business can be bundled under a Business Owner’s Policy (BOP).
Examples of Business Liability Insurance
Liability insurance coverage for your business depends on the industry that you are a part of.
An accountant would want to be covered with professional liability to back their economic standing. A landscaper will want to have business insurance with an extension for off-premises operations. This is in case an accident happens on their job site. A real estate agent is going to want commercial auto insurance. This would be in case there is an accident while driving between properties.
Get Business Insurance Today
You may only be looking for business liability insurance, or you may need several types of insurance to be covered. You must know what your policy consists of and how it is working to protect your business. Even if you don’t do anything wrong, you may find yourself in the middle of an insurance claim. You should be preemptively covered for these things.
Let us help you figure out the best business insurance plan for you. We want to see that your business is successful while being properly protected for possible issues that may arise at any time. Contact EPG Insurance today for your business liability insurance quote. From there, we will be able to help you plan for your business owner’s policy.
