Is Your Small Business Covered?
Small businesses start with great enthusiasm and keep growing with steady momentum, but a small mishap like getting a lawsuit or property damage can cause that growth speed to slow down significantly. To ensure you don’t suffer badly if a mishap occurs, you need liability insurance,
Liability insurance can protect you and your business from loss or damage, which can be caused by a lawsuit, injury, medical expenses, or a break-in. This can also provide protection against legal costs if you need to defend yourself in court.
It’s one of the most important and integral parts of any small business insurance plan. However, it’s not always easy to determine whether your business has enough coverage for an accident. Let’s Dive deeper and check out which coverage type and amount is best suited for small businesses:
Types of Business Insurance Policies:
- General Liability Insurance: This is the base policy that covers your business from property damage or bodily injury claims.
- Commercial Auto: Cover’s you and employees when driving for work in case the damage is caused to your business location, someone’s car, or personal property like a fence or mailbox.
- Professional Liability: Lawsuits arising from mistakes or errors caused by your business will be dealt with in this policy. This typically covers the litigation costs.
- Workers’ Compensation: If workers get ill or injured while at work, their death benefit, missed wages and disability benefits are provided by this policy.
- Commercial Umbrella: It extends the liability coverage a small business has. If the damages cost more than what your general liability policy covers, the umbrella policy will cover the rest.
How Much Coverage is Offered in General Liability Insurance?
The coverage amounts vary and can be as low as $100,000 (or even lower) and as high as $1 million. This depends on your specific needs and especially on your industry. Business industries with higher risks like medical, legal, accounting and consultation attract bigger losses, typically in the form of lawsuits, so for them, a higher coverage amount will be more suitable.
However, you will not be paid anything additional over your coverage limit. This means if your business suffers a loss of $500,000, but your coverage amount is only $300,000, you’ll be paying the remaining $200,000 out of your pocket. However, this will not happen if you get an Umbrella Liability Policy on top of your general commercial liability coverage. This is because then the additional $200,000 will be covered by the umbrella insurance – it picks up where your base policy leaves off.
Paradiso Insurance Can Help:
If you have a pretty basic small business coverage or don’t have any coverage at all, you need an expert to help you get the best possible one for maximum protection.
Feel free to contact us at Paradiso Insurance. We can help you figure out which type of insurance is right for your business and give you a free quote.