Whether you own a large corporation or you are just starting up a business, you are probably concerned with cutting costs whenever possible. As a result of your money-saving goals, you may be tempted to purchase the minimal amount of insurance coverage as required by law in your state. However, it is important to remember that the small cost of insurance is well worth the protection that it can provide if you are ever faced with a liability claim. If your current commercial liability insurance coverage is insufficient for your needs, you could end up paying a lot more in the long run.
Importance of Liability Insurance
Commercial liability insurance is not only a wise investment, but it could also potentially save your business from financial ruin. If you own a corporation, you can secure coverage for you and all other owners, directors, stockholders and executive officers. If you are a sole proprietor, liability insurance may cover both you and your spouse. Each commercial liability policy offers coverage for three main types of liability exposure:
- Operations and premises
- Products and completed operations
These three types of coverage protect your business from claims related to bodily injury or property damage that occur on and off your business site, negligent actions performed by any subcontractors or independent contractors working for you, and faulty products or operations. Your business is your livelihood, so make sure it is protected with the right commercial liability insurance coverage.