Two Types Of Business Insurance Downfalls That Could Prove Costly In A Small Business
Posted on: 6 January 2015
When you are in the process of starting a small business, there will be a lot of expenses to have to deal with for sure. Everything from investing in a storefront to filling shelves with merchandise will be at the top of your list of things to do. There is one thing on your list of things to do that can get neglected because it is looked at as just another expense. While business insurance is mandatory in a lot of forms, electing for the lowest legal limits is awfully tempting to a business that already has a heavy financial burden to reckon with. However, improper insurance coverage could easily lead to business failure. Here are two types of coverage that should never be skimped on, not even from the beginning.
Protection Against Personal Injury Claims
If there is one reason a small business can fail quickly, it is because they take a major hit due to a personal injury claim. If a customer is injured in your place of business, which can happen no matter how safe you try to be, paying for lawyers and settlement costs can be a big deal. If you opt for high deductible business liability insurance that does not provide enough coverage, you could be left having to foot the costs on your own. When medical bills alone could be thousands of dollars, it is hard to pay such expenses and keep your new business up and running at the same time. It is not at all uncommon for a business to have to close shop because of just one accident or injury and not enough coverage.
Product Liability Insurance
Especially in the business of food or food production, product liability insurance is crucial to the small business. This form of insurance will step up and protect your financial state in the event a product that you produce is deemed unsafe to consumers, leading to claims against you. Not only will you be faced with lawyer fees and settlements, but the loss of a substantial amount of inventory in your business. It can be tempting to just assume that your new products will not have issues, but in all reality, product liability claims can happen to almost any business.
As a small business owner, the last thing you need is to be dealing with lawyers, settlements, and unhappy customers. Making sure you choose the best insurance coverage options for your business from the start can protect you from major catastrophe.
Get more information from your local lawyer about insurance options.
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