As a small business owner, you know that risks lurk around just about every corner — unforeseen injuries or accidents that could financially burden your company or force you to shut down. Are you among the 29% to 35% of business owners trying to get by without general liability insurance?
A recent report says more claims are being filed against businesses, and the costs of the ensuing legal battles are rising. Without general liability insurance, your business would bear the full financial burden of such claims.
Hulett Insurance is an independent insurance agency that can tailor your general liability insurance to the specific risks of your company.
This article discusses the risks you face if you don’t have general liability insurance for your business.
What Is General Liability Insurance?
General liability insurance can guard against third-party claims for bodily injury, property damage, and advertising injury. The coverage can help safeguard your company from lawsuits for a customer falling inside your business, your workers damaging someone’s property, a defective product or service injuring someone, or a claim of libel, slander, or copyright infringement.
General liability insurance can help your company pay medical, legal, and associated costs without substantial amounts coming out of your pocket.
The Risks of Operating Without General Liability Insurance
Not buying general liability insurance exposes your business to several risks. These can result in claims and lawsuits that can quickly escalate through legal fees, court costs, and other case-related expenses.
Consider the following risks, which you might face without general liability coverage:
Financial Liability for Accidents
You could bear the full financial burden of paying the medical bills and legal fees for someone who is injured on your business premises or during normal business operations.
Property Damage Claims
If your business damages someone’s property, you could be held liable for the costs to repair or replace the damaged property.
Costs for Legal Defense
The cost of defending your company against a legal claim, even one that is baseless, could quickly rack up attorneys’ fees, court costs, and other related legal expenses.
Harm to Your Reputation
This risk cuts two ways — your advertising or business communications could draw a claim of libel, slander, or copyright infringement, and a lawsuit against your company could cause customers and suppliers to distrust you, hurting your business.
Regulatory Penalties
Depending on your business and location, you may have a regulatory requirement to carry general liability insurance. Not having it could result in legal trouble for your business, potentially requiring you to pay fines.
Missed Business Opportunities
Businesses and government entities often require contractors, consultants, or service providers to carry general liability insurance before entering into a business contract. Having no general liability insurance policy can put your business at a competitive disadvantage.
Bankruptcy
The cost of a single lawsuit or claim could be enough to drain your financial coffers and put you out of business.
General liability insurance is a crucial part of the risk management of your business, giving you the financial safeguard to feel comfortable running your business and pursuing growth.
Get General Liability Insurance to Safeguard Your Business
Getting the right general liability insurance for your company means properly assessing your specific business needs, identifying your business risks, and tailoring a policy to provide the needed safeguards.
Hulett Insurance is an independent insurance agency. We are committed to understanding your business and industry so we can provide you with the insurance to meet your risk management strategies. Give us a call today.
