Starting and growing a small business is a feat to be proud of in today's competitive business landscape. Business owners of these small businesses may not be in a position to utilize all the protections available during the early, cash-tight months. But as the business grows, it becomes critically important for these new business owners to plan for the future. A good way to do that is to protect it with general liability insurance coverage.
If you are a new business owner who is uncertain about whether you should purchase general liability insurance coverage for your business, here are three convincing reasons to do so.
Damage to rental property
Since few new businesses can afford to purchase the space, tools, and equipment they need to produce their product or provide their services, most choose to rent or lease them, instead. While renting or leasing needed items does make it possible for the business to be productive with a smaller initial investment, the business owner may be financially responsible for any damages or loss of the rented or leased items caused by fire, theft, or other events. By taking out a general liability insurance policy, rental or leased items are protected without risk of damaging the business owner's financial situation.
Injuries that occur on your business's premises
Many new businesses begin at kitchen tables, basement workshops, or in small, rented spaces. Employees, contractors, suppliers, customers, and clients that come and go in these places can put the new business in a risky situation, should they fall or become injured while on the premises of your business.
In many cases, homeowners insurance providers do not provide coverage to home business ventures operating out of their policyholders' homes. If an injury or damage were to occur at the home, the business owner could be held financially responsible unless they are covered by a suitable general liability insurance policy.
Help with legal defense costs
Businesses are a frequent target for lawsuits from disgruntled employees and dissatisfied clients and customers. When a civil suit is brought against a small business owner, they may find themselves having to hire an attorney, even if they cannot afford to do so. If, however, the small business owner has chosen to protect themselves and their business with a general liability insurance policy, their legal defense costs are typically covered under the terms of the policy.
To learn more about this type of insurance and how it can help your small business, contact an agency like Commonwealth Insurance Group that offers general liability insurance policies in your area.
Share6 August 2021
When I got married, I knew that there were a few things that I needed to learn about the way the world worked. For starters, I had to figure out how insurance worked since I wanted to make the most of my life without worrying about money. I started focusing on the policies that I had in place and gradually moved towards acquiring new life insurance and the like. Having each of these coverages helped give both me and my spouse peace of mind. We both knew if something happened to me that the other would be okay. Check out this blog to learn more about insurance needs.