Starting your own small business can be exciting. There are oceans of possibilities ahead when you decide to start your own company. There can also be a lot of unknowns. When you own your own business, you have the ultimate power. However, with great power comes great responsibility. To make sure you’re legally protected from mishaps, you’ll need to shop for business insurance. Here’s what you need to know about small business insurance.
Why You Need Business Insurance
When you’re just starting your company, profit margins are going to be thin, if they’re there at all. A large financial blow could have a devastating impact on your fledgling business and may even cause it to go bankrupt.
That’s why you need small business insurance. There’s just one problem though: there are several types of business insurance out there. Which one should you prioritize? Most people agree that you need to invest in general liability insurance before you shop for any other policies.
General Liability Insurance
As a business, you want to avoid being held liable for any injuries that occur on your property. That’s where general liability insurance comes in. According to Forbes, “general liability insurance protects a small business from claims of property damage and bodily injury.”
If someone were to visit your business’s property and their property was damaged, you may be held liable for that. If they were to experience an injury or an accident on your property, you could be held liable for that if you don’t have general liability insurance.
General liability insurance could pay for property damages sustained by your patrons or any medical bills that may follow an onsite injury. This is a necessary safety net that all small businesses should utilize.
What Else does General Liability Insurance Cover?
General liability insurance can also cover other types of business-related insurance claims. These include copyright infringement, advertising injury, and reputational harm. Even better, if you were to get sued, general liability insurance would typically cover your legal bills and any judgments or settlements you’d be forced to pay out.
Another Reason to Purchase General Liability Insurance
If all the above reasons weren’t enough, there’s one final reason to purchase general liability insurance: many institutions require it. Everyone from your lender to your clients will often require that you have general liability insurance before they agree to do business with you. Thus, when you do acquire general liability insurance, make sure to secure a certificate showing that you’re insured. You may not be able to do business without it.
