Becoming an Adult

Tips to Keep in Mind When Purchasing Liability Insurance for Your Business

8 June 2021

Robin King

As a business owner, you likely always have your mind on your bottom line and how you can continue to grow. But far too many small business owners don't spend enough time thinking about something that could have a very negative effect on that bottom line and stunt that growth. A workplace accident or any kind of incident that leaves your company liable for property damage or bodily injury could turn your entire business upside down. It's important that every small business owner have liability insurance to protect against this situation. Here are some tips to keep in mind.

Stop Delaying This Important Task

Liability insurance may be something you've already thought about at least in passing, but maybe you keep putting it off because your "business isn't big enough yet." Every month you go without an incident is a month where you saved money by not having to pay an insurance premium. But the moment that first incident occurs, all of those savings will not mean a thing to you if you still don't have coverage. Liability insurance should be just as important to you as balancing the books at the end of the day.

Figure Out Your Level of Risk and Plan Coverage Accordingly

Different types of industries have different types of risks. If you own a construction business with heavy equipment and materials that get hoisted into the air, your risk is significantly hire than someone that owns, say, a local printing shop where employees just sit behind a computer all day. A seasoned liability insurance expert can take a look at your business and help you determine the most common risks in your industry and help you find the right coverage.

You Might Need More Than One Kind of Liability Insurance or a Specific Rider

General liability insurance is a good starting point, but there may be specific things that are not covered. There could be additional restrictions like only paying out on property damage up to a certain amount. Read the policy in detail and talk to your agent about adding additional policies or riders to ensure that all possible situations are covered.

It Never Hurts to Contact Your Insurance Agent for an Occasional Review of Your Policies as Your Business Grows or Changes

Even if you already have liability insurance, it's never a bad idea to have an expert take another look at your current setup. If your business has grown, so has your potential exposure if something goes wrong. Perhaps it's time to update your policy to ensure more protection and peace of mind. Contact an agent today to get started.

For more liability insurance information, contact a company in Prescott, AZ.

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