Why Small Business Owners Need Liability Insurance Wellness Health Fitness

Why Small Business Owners Need Liability Insurance

Posted by admin 26 Jul, 2011

If you are one of the thousands of hardworking people who own and run their own personal businesses, then you need to protect everything you’ve worked for. All the time, money, effort and vision you’ve put into creating a successful business could be at risk at any time from a lawsuit. Now, you may think that none of your customers could ever have any reason to sue you, but remember that not everyone is reasonable. Frivolous lawsuits abound and no matter how innocent you are, you could end up losing a lot of money.

The structure of a small business is such that your personal assets are not separated from your business assets. So if someone has a problem with something your company has done, you could stand to lose your house, your savings, and nearly the shirt off your back if you’re so unfortunate. The purpose of business liability insurance is to offer you protection against that contingency. Your insurance company will pay your legal costs and any monetary damages. The kinds of things you could get sued for are personal injury, if someone is injured while on business property; advertising claims, if they think your advertising was libelous or infringed a copyright; property damage, if you damage their property; and professional mistakes you’ve made or inferior products that caused injury or harm. No matter how careful you are, accidents can happen, and because you can’t guarantee that everything will be 100% perfect 100% of the time, you need insurance.

You need to purchase business liability insurance coverage for the same reason that you purchase homeowner’s insurance, car insurance and health insurance. In each case you are trying to protect yourself against an event that is unlikely, but has the potential to ruin you financially. Don’t be ruined, be smart. Buy insurance.

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