It’s taken long days, sleepless nights, and countless sacrifices to get your small business off the ground. Now that it’s up and running, make sure you protect your investment. No matter the type or size of your business, here’s what you need to know about commercial liability insurance:
What is commercial liability insurance?
Let’s say you own a bakery, and you don’t have commercial liability insurance. Your walkway is slippery after a major snowfall, causing a customer to slip and fall on their way out from your store. You rush out to help them up, but they’ve sustained a significant knee injury and an ambulance needs to be called. A few weeks later, you get a notice from the customer’s lawyer that you’re being sued for their injuries and lost time from work, alleging you neglected to clear your property of snow and provide a safe walkway for customers. Forced to hire a lawyer, you’re faced with legal fees and the possibility of paying an expensive settlement or judgement.
Commercial liability insurance helps protect businesses from unexpected financial losses, including losses resulting from your responsibility to protect the property of, and avoid injury to, other people and businesses. It’s one of the most important types of business insurance policies because it can protect you against several types of legal liabilities, such as third-party property damage, personal injury, and advertising liability.
How does commercial liability insurance protect my business?
Commercial liability insurance protects your business against significant financial risks, including:
- Damage to third-party property due to your business activities
- Damage to a building where you lease space
- Injuries to customers or vendors while on your property
What types of businesses need commercial liability insurance?
No business is risk-free. Whether you own a large commercial space or a small, home-based business, commercial liability insurance can be customized based on your business’s needs, size, budget, and the specific risks you’re likely to face in your day-to-day operations. Plus, the added cost of commercial liability insurance is manageable compared to what you may have to pay in the event of damage, a lawsuit, or an accident.
You’re an expert in your business — not in insurance. Reach out to a licensed insurance broker to discuss your business’ needs and make sure you have the right coverage to help your business thrive.
Share this article on Facebook or Twitter to help other small business owners protect themselves from unexpected financial losses.