While operating a business, you can be sued for anything. Liability insurance protects your business when you need it most. It can also enhance your credibility in the industry and help your business grow. Here are some signals that should let you know when it is time to get liability insurance.
You Hire Several Employees
Good employees are the foundation of a successful business. Great employees can help your business evolve well into the future. However, you should also be aware that your business inherits a lot of responsibility by hiring employees. You immediately become liable if they sustain serious injuries while they are on the job. Workers’ compensation insurance protects your business if there is an injury in the workplace. This policy covers your employee’s medical bills, lost wages, and potential disability benefits if they are injured. In the unfortunate event that one of your employees dies, workers’ compensation also provides death benefits.
Employer’s liability insurance covers your business against possible legal action when an employee believes that your negligence caused them to get hurt. You are legally obligated to have some form of liability coverage once you hire an employee. Professional liability insurance is another option to consider. Professional liability insurance covers your business if one of your employees makes a serious mistake.
You Acquire Land
As you search for business liability insurance, remember that any land that your business opens to the public leaves you vulnerable to a potential lawsuit. Whether you own the property or plan to take out a lease, general liability coverage protects your business if you cause property damage or someone gets injured on your land. In addition, liability coverage prevents you from paying for damages out of your pocket and putting a significant financial strain on your business. Commercial property insurance is also an asset. Commercial property covers any damage to your inventory and equipment that you need to operate your business.
You Are Performing a Large Task
If you are performing a large task or working with a big client, they will want to see your proof of insurance before they agree to anything. A certificate of liability insurance helps you show that an insurance carrier has certified your business and ruled that it is credible. It also shows that your business is equipped to cover any damages that you may accidentally cause. If you employ independent contractors, you need products-complete operations coverage. If you are working for a big client, you need to cover yourself because their losses could cause significant financial damage if you do not have insurance.
You Are Launching a Website
If you plan to grow your reach by launching an online blog, remember that you can get sued over things that you publish. Thousands of businesses get sued for copyright infringement based on something they posted online. False advertisement is another common issue that puts many businesses at risk. General liability coverage can protect your business against possible legal action based on copyright infringement, slander, and libel. If you allow your customers to complete transactions online, you are responsible for safely storing any sensitive information such as email addresses and debit cards. If a hacker steals the information, you will be held liable for the data breach. Cyber liability coverage can protect your business from this risk.
You Operate a Vehicle for Business
Your personal auto insurance policy will not cover you if you use your vehicle for work-related endeavors. Commercial auto insurance covers any damage to your vehicle while you are using it for work. You are also responsible if your employees use their personal vehicles to perform work-related tasks and something goes wrong. Hired/Non-owned auto insurance can cover any legal action against your employees.
As a business owner, you have invested a lot of time and money into your business. Protecting that investment means insurance should be a priority no matter what stage your business is currently in. Business liability insurance can protect you from losing everything if something goes wrong. If you have any questions about business liability insurance, our experts at 01 Insurance are here to assist you. Contact us today to learn more.