Small business owners might be surprised to learn that general liability insurance costs just $11 per month. This vital protection could save your company from devastating financial losses. The coverage serves as a foundation that companies of all sizes need.
Your company faces risks every day. These include customer injuries, property damage claims and more. The federal government makes it mandatory for businesses with employees to carry specific coverage. This includes workers’ compensation and disability insurance. General liability insurance shields you from financial losses that stem from bodily injury, property damage, and medical costs. The protection extends to legal issues like libel or slander.
Small business general liability insurance comes with coverage limits of $1 million per occurrence and $2 million total. Most companies pay around $42 monthly for this detailed protection. The investment is minimal when you think about the extensive coverage against third-party claims and advertising injuries.
We at Nickerson Insurance Services, INC. know the ins and outs of business protection. Our team can help secure the right coverage for your company’s needs. Ready to protect your business’s future with proper insurance? Give us a call at 310-326-6333 to discuss your requirements.
The Real Cost of Operating Without Business Liability Insurance
Small business owners often try to cut costs by skipping general liability insurance. This choice can backfire with devastating expenses. Research shows a shocking fact – 75% of U.S. businesses have 40% less insurance than they need. These numbers paint a grim picture of companies at risk of financial ruin.
Your entire operation faces danger without the right coverage. A customer might slip and fall at your location. A product could malfunction and hurt someone. You’d have to handle all legal and money problems on your own. The legal costs can hit thousands of dollars even if you end up winning the case. The stakes get higher with property liability settlements reaching hundreds of thousands, while product liability can cost millions.
Here’s what you might pay out-of-pocket without business liability insurance:
Attorney fees that pile up before court proceedings start
Settlements that can wipe out your business savings
Medical bills for hurt customers or staff
Court damages beyond what you can afford
Repairs for damaged property or equipment
The collateral damage goes beyond just money. You’ll spend time dealing with legal issues instead of running your business. Your team’s output drops and projects get stuck. A lawsuit can destroy customer trust and hurt your relationships with suppliers and partners. These problems stick around long after the legal issues are done.
How General Liability Insurance Protects Your Small Business
Your small business needs general liability insurance as a shield against third-party claims that could put your operation at risk. This basic coverage protects your business from financial losses that come from day-to-day business activities.
Bodily injury coverage is the life-blood of general liability protection. A customer might slip on a wet floor or trip on an uneven step at your location. Your policy would cover their medical bills, ambulance costs, and related expenses. The protection goes beyond your premises and covers injuries that happen during your work at client locations.
Property damage liability plays a crucial role in this protection. Your employee might accidentally break a client’s window while working. The general liability insurance would pay for repairs or replacement. As with product-related damage to other people’s property, this coverage helps handle the financial effects.
General liability insurance protects you from personal and advertising injury claims too. You get coverage against libel and slander accusations, copyright infringement in ads, false arrest claims, and privacy invasion allegations. To name just one example, if someone sues your business for using copyrighted marketing material without permission, your policy would cover legal defense costs and settlements.
Products-completed operations coverage shields your business from injuries or property damage caused by your products or finished work. This protection applies even when problems happen away from your business location. This detailed coverage will give your small business financial security against many potential claims.
Success Stories: Small Businesses Saved by Insurance Coverage
Businesses face ground risks daily. Proper insurance coverage can determine whether a business survives or closes its doors. The average slip-and-fall claim costs $20,000, and some claims go much higher. These numbers represent small businesses that barely escaped financial ruin.
A family restaurant learned this lesson when a customer slipped on a wet floor without a warning sign. This oversight almost led to a $100,000 lawsuit to cover medical expenses and lost wages. The restaurant’s general liability insurance helped them continue operating without this massive financial burden.
To name just one example, a professional contractor’s team member forgot to turn off the water during an installation. This mistake caused major water damage to the client’s home. The flooding ruined both the kitchen and finished basement, which resulted in a $200,000 claim. The contractor’s business liability insurance covered the damages and saved both the business and its reputation from potential bankruptcy.
Small retail businesses need liability protection. An independent retailer faced legal trouble when a customer tripped over merchandise in an aisle. The store’s general liability policy covered medical payments and legal defense costs. This coverage helped the business avoid a financial catastrophe.
General liability insurance is a vital shield that protects your small business from unexpected incidents which could lead to financial ruin. This coverage safeguards your business from devastating claims that might cost hundreds of thousands of dollars.
Nickerson Insurance Services, INC. knows your small business’s unique challenges. Our expert team will help you pick the right coverage to protect your business’s future. Give us a call at 310-326-6333 to learn about your insurance options and keep your business safe from unexpected liability claims.
