Do I Need to Buy Business Insurance?

Nov. 11, 2019 - PRLog -- General Liability Insurance for Small Business

A general liability policy will cover you for bodily injury, property damage and data loss. You will be protected against lawsuits and liabilities associated with your product or service. You'll also be protected against advertising injury and contract liability.

Most types of businesses need to have general liability insurance. Here's a list of the most common ones: construction companies, electricians, cleaning companies, landscaping companies, yoga studios (https://smartfinancial.com/Do-Yoga-Teacher-Need-Business-Insurance), gyms, nail salons and restaurants (https://smartfinancial.com/Insurance-Requirements-Restaurant-Business).

Some businesses carry more risk than others. The bigger your company gets, the more prone  you are to being involved in an accident. A simple trip-and-fall accident can become catastrophic if you don't have general liability insurance for your business. In some professions it's even common to require employees to carry their own general liability insurance as well as having one in place for the company at large.

How Much Is Liability Insurance for a Small Business?

The best general liability insurance for a small business (https://smartfinancial.com/8-tips-for-lowering-your-small...) may or may not come cheap. You'll want to compare business insurance quotes to find the best deal. The average annual cost is less than $800 or less than $40 a month. The amount you pay may be much higher or much lower depending on how much risk is involved in the type of business you run. If you have a very small-scale operation or work out of your own home and have no employees, you can expect to pay much less.

It's very expensive to not be insured with liability insurance for business and get sued. According to Insurance Journal, the average paid liability claim is $15,000 so it's better to have it and be protected than be without and get sued.

What Is Business Owner's Policy (BOP) for Small Business?

A BOP bundles coverages together to customize a policy. Usually, a BOP includes general liability, business property insurance and commercial interruption insurance. You can only buy a BOP if your company employs fewer than 100 employees, grosses less than $1,000,000 a year in revenue and is not considered a high-risk business.

A BOP will not only protect you against the types of lawsuits associated with your industry, but it will also cover damages to a client's personal property.

You can choose limits on BOP insurance, but don't go lower than the value of the business personal property or else you will be at a loss if a catastrophic event takes place.