Running a business is not for the faint of heart, and as all good business owners know, there are many things to consider when starting and running a company. One of these things that is crucial not to overlook, however, is liability insurance. Even the most careful of businesses will find themselves in need of liability insurance at some point or another. Liability Insurance is essentially just protection for your company and your employees against lawsuits that may come up as a result of day-to-day operations. Although many states do not technically require it, here are four reasons why your business needs liability insurance.
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1. When an Employee Faces Bodily Injury
Depending on the nature of your business, there can be some risks associated with working at your company. Unfortunately, this is unavoidable in many industries and can happen in day-to-day office settings as well. For instance, if your cleaning crew mops the floors and somebody slips and falls, this can count as bodily injury. If a warehouse worker is hit in the head by something that falls off the shelf, this can also count as bodily injury. Bodily injury encompasses many different types of accidents. Medical bills can become expensive very quickly, and with liability insurance, you and your company will be covered by these expenses.
2. When an Employee Faces Property Damage
While we do everything we can to avoid them, the fact of the matter is that accidents happen. Unfortunately, when they happen in the workplace, you and your business may be liable. If an employee’s personal property is damaged such as their cell phone or their car, you may need to pay up. While personal property may not cost a ton of money, fighting cases like this in court can cost you a pretty penny. Luckily, liability insurance covers instances like these and is here to make sure an accident doesn’t break the bank for you.
3. When You or an Employee Face Personal Damage
Personal damage can look a lot of different ways, but most commonly in a litigious sense, this refers to libel or slander. If an employee accuses you, your company, or other workers of causing them personal damage, this may lead to a lawsuit. As you can imagine, trying to sort out these cases can be incredibly expensive and time-consuming. Liability insurance can be used to cover the expenses associated with personal damage issues.
4. Peace of Mind
At the end of the day, running a company is incredibly stressful and comes with many unforeseen challenges and costs. With liability insurance, you limit your financial responsibility when tough situations arise and you can overall save yourself and your company quite a lot of money. It is important to be proactive with this coverage to help protect yourself, your company, and your employees from liability against unforeseen circumstances.
As a business owner, you can account for and plan for many things, but liability insurance helps you to prepare for the things you cannot plan for. A solid liability insurance plan will pay dividends for you and your company.