The reality of doing business is that your organization is going to face risks. The dangers that threaten your livelihood can result in your business being held accountable for legal and financial responsibilities that can quickly become overwhelming. As a result, many business owners purchase insurance policies for protection against the fallout of such losses. Most businesses go straight for general liability, which is a wonderful place to start but you should not stop there!
Every organization is unique and faces different risks. As a result, general liability insurance is not a one-size-fits-all solution. As a company owner, you need to carefully assess your general liability exposures and add business insurance policies that cover the gaps and meet your specific needs. By understanding your risks, you can purchase the right insurance coverage to safeguard against all potential risks. Nowell Agency is here to share the common types of liability loss exposures and resulting consequences, as well as guidance on finding the best insurance policy for your organization.
How Much Liability Insurance Do I Need For My Business 2022
It’s crucial to know and understand what your general liability insurance plan covers and where it falls short, leaving potentially risky gaps. Common liability exposures that business owners should consider that may result in loss include:
Premises liability: Injury of a client or employee on your premises resulting in bodily injury or property damage.
Contractual liability: Liability related to contracts signed where your business fails (or is perceived to) meet the contractual obligations.
Operational liability: Injuries or property damage liabilities that occur during ongoing operations/projects.
Completed operations liability: Third-party injuries or damage to a site that result after a completed project/product and is caused by your work.
Product liability: Legal claims and/or injuries related to failures in the manufacturing, distribution, or sales of a product you produced.
What Happens if General Liability Insurance Isn’t Enough?
If the only insurance product your business has is general liability, you may want to consider the potential consequences that your organization may face if there is a loss:
Damaged reputation: Your business may face a loss of credibility and positive reputation if disaster strikes. This could lead to the loss of customer loyalty, lack of employee retention, decreased sales, and risk your standing with investors.
Damages: If you’re held legally responsible for a loss, product malfunction, false advertising, or injury, your business will likely be responsible for any resulting financial burdens and paying damages.
Defense costs: Your business may also have to pay for any legal defense costs and other claim-associated costs.
Business closure: If the financial repercussions and reputational harm are too vast, you may even have to close your beloved business.
Disaster can strike at any time and loss can occur. However, you can decrease the risk and burdens you potentially face with complete business insurance coverage. General liability insurance is a great place to start but it is not a single product solution. The risks of being underinsured and the severity of potential consequences are alleviated with the proper business insurance policies. Nowell Agency is here to help! Contact us for a customized business insurance policy. We insure companies of all sizes, from home-based sole proprietorships to vast commercial organizations. All it takes is a call to one of our experienced agents to obtain adequate insurance coverage and you’ll eliminate the dangers posed by insurance exposures. Protect your valued investment with business insurance from Nowell Agency today!
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The Nowell Agency has been my primary agent for many years and they are attentive, well-staffed, and easy to talk to. Their agency has helped me through state to state moves and career change and kept my assets covered.
My very first insurance experience was when I bought my first house and I called the Nowell agency for a quote. I had no idea what I needed or how much and they were so very kind and knowledgeable and explained everything to me in detail which I so much appreciated. That has been 4 years ago and im still a customer never plan to leave.
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The reality of doing business is that your organization is going to face risks. The dangers that threaten your livelihood can result in your business being held accountable for legal and financial responsibilities that can quickly become overwhelming. As a result, many business owners purchase insurance policies for protection against the fallout of such losses. […]