Small business owners stay busy keeping up with customer demands, product delivery, and employee retention. Although these are major areas of concern, dealing with the liabilities from the company’s risks and exposure should also be a priority. Whether you look to group captives or nationwide providers for your insurance needs, you should be aware of the most common liabilities faced by small businesses.
Your business will be susceptible to third party claims of bodily injury and property damage as a result of your business operations. With bodily injury claims, the associated medical costs are also a common part of a claim. By carrying a general liability insurance plan, you can save your company from the financial loss of taking care of these claims out of business funds. The size of your company, the industry you operate in, and the location will all impact the cost of the plan.
If your company owns and operates vehicles for work purposes, you have the liabilities associated with employee accidents while in company cars. There is also a risk of accident when an employee drives their own car for work purposes. If your salesman attend a conference or meeting in his own automobile and gets into an accident, the liability may fall back on your company as well as the employee. You minimize these risks by a strong commercial auto policy with a hired non-owned supplemental addition.
Even if you feel your working environment is safe and free from the threat of employee injury, something as simple as a trip on the stairs can injure an employee. Rather than face a personal injury lawsuit in court, proving a workers compensation plan is one way to fend of the financial risk. Many states require a form of coverage, but you can determine the limits and deductibles.
Keeping your company free from liability isn’t possible, but you can be ready when an accident or incident occurs. Choosing quality insurance coverage is one way to address potential financial losses.