If you’re a business owner, you can attest that having an insurance policy is vital for your success and well-being. In fact, many businesses fail due to a lack of proper insurance coverage. This is why it is essential to have a general liability insurance policy in place. In this article, we will discuss the reasons why you should consider getting a general liability insurance policy.
Why should I get a general liability insurance policy?
There are several reasons why you need a general liability insurance policy:
1. Protecting your business from unforeseen events
One chief reason to consider having a general liability insurance policy is that it protects your business against unexpected events. A general liability insurance policy covers any claims made by third parties such as employees, contractors, customers, suppliers, etc., arising out of your business operations. If these claims arise out of your business activities, they will be covered under your general liability insurance policy. For instance, if one of your workers accidentally cuts himself while using a power saw at work, he/she may file a claim with his employer’s worker compensation insurer. However, if he/she files a claim with your general liability insurance provider, you would be protected against this type of claim.
2. Protecting your business against data breach
You can also protect your business against data breaches. As mentioned earlier, if you don’t have adequate general liability insurance coverage, you could be held liable for any losses caused by hackers who steal your customer information. Having a general liability insurance policy will ensure that you’re not held responsible for any loss of personal information.
3. Avoiding employee actions
Another good reason to consider getting a general insurance policy is that it helps you avoid claims filed by your employees. Employees often do things that might harm others without realizing how serious those acts are. If you don’t provide them with sufficient training, supervision, and guidance, they might make mistakes that result in accidents or even crimes. When this happens, you could be held accountable for their actions. To prevent this from happening, you must ensure that your business has a general insurance policy and give your employees sufficient training and supervision.
4. Protecting your business assets
As a business owner, you want to keep your assets safe. One way to do so is to invest in a general liability insurance policy that will help you protect your business’s physical assets. If there is ever a fire or flood that destroys your office building, your equipment, or your inventory, you will be compensated for the damage done.
5. Protecting your business reputation
A general liability insurance policy will also help you maintain your business’ reputation. If you have an accident involving a vehicle, you can expect that people will talk about it online and offline. If you don’t take care of the situation properly, you might lose customers and clients. Your general liability insurance policy will allow you to pay off any fines and penalties imposed by the authorities. It will also help you repair your damaged reputation.
6. Protecting your business from lawsuits
If you own a business, chances are you know that lawsuits are part of doing business. Whether you’re sued for negligence or some other reason, you’ll need to hire an attorney to defend you in court. The cost of hiring an attorney can be quite expensive. In addition to the money you spend on attorneys, you will also have to pay for depositions, expert witness fees, and other costs associated with litigation. This expense can quickly add up.
To avoid spending too much money defending yourself in court, you should get a general liability insurance policy. By purchasing a general liability insurance policy, you will save yourself time and money.
7. Avoiding tax penalties
It is also important to note that having a general liability insurance policy may help you avoid tax penalties. The IRS requires all businesses to carry general liability insurance. Failure to do so can result in heavy fines. Therefore, if you don’t already have a general liability insurance policy in place, then you should contact an agent immediately.
8. Helping you find new clients
One thing that many businesses struggle with is finding new clients. If you don’t have enough marketing materials, then you may not be able to attract more customers. If you don’t advertise well, you could end up losing potential clients. A general liability insurance policy will help you attract new clients because it allows you to market your services effectively.
If you haven’t had a general liability insurance policy before, then now is the time to start considering purchasing one. By doing so, you will be able to enjoy peace of mind knowing that your business is well-protected.