Are you considering going into business for yourself? If so, you need to consider commercial liability insurance to protect yourself from any visible or possible liability that might occur. This will save you a lot of money in the future, especially since we live in a sue happy society.
Commercial liability insurance will pay for part or all of the damages that are caused due to liabilities of the company. These could have been damages due to business dealings or not, but either way you will be covered. It could be something as simple as a child skateboarding in front of your office and they break their arm. If the family sues you will be covered and will not have to worry about paying thousand of dollars out of your pocket.
Most of the time your coverage will cover legal fees if you decide to fight the case as well or during the settlement period. It is necessary for your businesses survival to have adequate commercial liability insurance to protect yourself from expenses that you are not expecting.
One has many options of applying for commercial liability insurance. However it is the insurance company that, by using their underwriting standards, determines if the business is eligible for insurance and for how much. The insurance companies have classifications on businesses, and any new commercial liability insurance has to fall in one of those classifications. This means that even a company with a totally clean record might still have to pay a high premium for commercial liability insurance.
You will have quite a few different options when picking your policy. You can choose the type and the amount of coverage you want depending on the risks you think you might incur. There are certain classifications on businesses and underwriting will determine whether your business is eligible for liability insurance and how much you need to protect yourself and your business.
Imagine this for a moment…
There was a bar in Indianapolis that over served a patron and the patron tried to drive home. This person ended up getting into an accident and injuring a young child. This child is bound to a wheelchair for life and has to be fed by another for its’ entire life. The family rightfully so, sued the bar, the bartender, and the man who hit them. They won over $5 million dollar all together and the bar shut down, the bartender has half their wages garnished every week, and the man that hit them ended up in jail for over 10 years.
If this bar would have had commercial liability insurance to protect themselves from this horrible incident they could have stayed open, and just experienced a hike in their insurance rates. The bartender could have carried a type of liability insurance for themselves to protect them from this incident as well.
The moral of this story is you never know when something is going to happen and you are going to wish you had commercial liability insurance. It is better to start with it and not need it, than to not get insurance and end up wishing you had it.
By Robert Watson