Q: What insurance do I need?
– New Biz Owner
A: Dear Biz:
Liability insurance is a valuable form of protection needed by most businesses. Choosing the right policy for your business can be tricky, so it’s important to understand what liability insurance covers before you make the investment.cl
If you get sued for personal injury or property damage, general liability insurance will cover the cost of counsel and the claim, up to your policy limits. As a business owner, you have a responsibility to keep your clients and customers safe. General liability insurance offers protection if that responsibility is not fulfilled.
You also need professional liability insurance if your business offers professional services. This covers mistakes your business is responsible for not included in a general liability insurance policy.
If your business manufactures a product, you’ll need a product liability insurance policy specifically designed to cover the items you make. Litigating product liability cases can be expensive, so this one is a must.
If you employ people in your business, you may also want to consider employment practices insurance, which protects you in the event of litigation against you by one of your team members.
Liability insurance is relatively inexpensive, but many business owners find it difficult to get competitive premiums without a lot of legwork. A Family Business Lawyer® can help you with this as they’re experienced in helping entrepreneurs achieve success through careful financial and legal planning.