Over 100 million lawsuits against small businesses are filed each year.
Of all the types of business insurance, liability insurance is arguably the most essential for self-protection. If you don’t have it, you may have to pay severe consequences for anything that goes wrong at your location or with your products and services.
Getting the right business liability insurance requires you to understand the differences between different policies. In this post, we’re going to give you 3 tips that should help make this decision a little bit easier. If you’re confused about the various types of insurance, keep reading and you’ll have a roadmap for choosing the right policy.
- Understand Business Insurance
What is business insurance?
There are many types of business insurance, but the main one that every business needs is liability insurance. This protects you if someone sues you after a bodily injury or property damage from your products, services, or place of business.
Say someone slips and falls at your retail shop and they require surgery. They may try to sue you for medical costs and lost income. Without liability insurance, they may be successful, but with it, you’re usually protected.
- Understand Your Risks
It’s important to understand what’s covered under general liability insurance and when you may need to add more to your policy. For example, if you sell products to customers, you may need to take out a separate product liability insurance policy to protect against injuries resulting from the malfunctioning of your product(s).
Professional liability insurance, on the other hand, is necessary for those companies that offer professional services. This might include realtors, doctors, or IT professionals that are responsible for specific services, be it for someone’s health or safeguarding against cyberattacks.
Before you choose your business insurance, understand what your business risks are. With that under consideration, work with your insurance expert to choose the policy that best fits your needs.
- Understand the Budget
Lastly, understand the budget. There’s going to be an optimum sum insured that you’ll need to calculate to get the right amount of coverage.
You can’t underinsure your business to have lower premiums. This will almost always result in problems down the road.
The real tip here is to work with the right insurance expert. If you’re in North Carolina, that’s the Tom Needham Insurance Agency. We offer custom policies that account for your business needs, as well as your budget.
Get the Best Business Liability Insurance
Without business liability insurance, you’re left vulnerable to any little thing that may happen to a customer. If you want to protect yourself, you need a great insurance policy from a great insurer.
Tom Needham Insurance Agency has helped countless North Carolina small businesses make the right insurance decisions. We can help you understand what type of coverage you need and how much to purchase. Contact us today to book a consultation and get your business insurance in order.