New businesses have a tough road ahead of them many dont survive, and the ones who are going to make it have to make good decisions from the beginning. Business insurance is no exception its crucial for a business to plan for a worst-case scenario, and to anticipate things that could come up.
Liability insurance helps a business avoid major losses that could create huge setbacks, and sometimes even cause the end of the business.
Ideally, a business should get a liability insurance policy early on because a lawsuit or other liability issue could cause financial ruin if it is in the early days of a business.
But is it for everyone? How does a business owner know if they need to get business liability insurance?
The business owner has to first know what kind of business they are running, and where its headed in the future. What kind of products and services will you be providing? Who will your clientele be? What kind of new products or services do you see yourself adding in the future?
These questions help you identify which type of insurance would be best suited for your business. Four options are product liability insurance, employment liability insurance, professional indemnity insurance, and general liability insurance. You can get these in different combinations and packages, and see different pricing options from different companies.
If youre not selling or manufacturing or giving away products, you dont need a product liability insurance policy. If youre not providing a professional service, you dont need professional indemnity insurance. If you do not plan to hire employees, you dont need employment liability insurance.
Most businesses can benefit from general business liability insurance, because it covers a variety of possibilities, including claims of injury, false marketing, accidents, and more.