If you are operating a business that services customers or companies directly, it’s a good idea to have Business Liability Insurance so you and your business can stay financially protected.
What is Business Liability Insurance?
Business Liability Insurance is insurance coverage that provides financial protection from things like bodily injury and property damage claims against your business. If you serve visitors in a location or at their home or accept payments in exchange for goods or services, then Business Liability is a crucial addition to your insurance policy. Legal costs can bankrupt a business in the blink of an eye, and this coverage can help protect you from that.
The three most common types of Business Liability Insurance are Product Liability, Professional Liability, and General Liability.
What Does Business Liability Insurance Cover?
Your business can be covered from various unforeseen events and expenses under your Business Liability Policy. Everyday events that Business Liability helps cover are:
- Customer Injuries in a location
- Slander or defamation lawsuits resulting from marketing campaigns or employees
- Lawsuits claiming financial loss as a result of your business services
- Alcohol-related incidents
Consider Business Liability a “general” coverage for your business. If you are an e-commerce business or a bar, you may be required to obtain additional liability coverage.
Do I Need Business Liability Insurance?
Yes. If you are operating a business that welcomes people into a location, takes payments, or offers goods or services, you should have Business Liability Insurance. If your business is providing services to others, then you need to have this coverage.
Outside of protecting your business, employees, and assets, Business Liability Insurance is often required in these instances:
- Company-owned vehicles
- Licensing Requirements
- Lease Terms
- Local, State, and National Laws
If your business needs Business Liability Insurance or if your state has specific requirements relating to your business, then make sure to reach out to us today so we can help!
How Much Does Business Liability Insurance Cost?
The cost of your Business Liability Insurance will depend on a few factors, including your business operations, number of employees, employee payroll, and gross sales. Generally speaking, insurance costs are tied to risk. Therefore, business operations with higher risk tend to incur higher Business Liability Insurance costs than industries that operate virtually or behind a desk. For example, suppose you have a crew of 100 electricians who work on power lines. In that case, your cost of coverage will be significantly higher than a T-shirt shop.
The best way to determine a concrete cost for your business is to reach out to us so we can provide a detailed quote with a variety of coverage options.
How Can I Get a Business Liability Insurance Policy?
The first thing you’ll want to do when getting Business Liability Insurance is to make sure you have all of your business information readily available. Here are some items that you should have prepared:
- Number of Employees
- Average Cost per Transaction
- Standard Operating Procedures
- Legal Agreements
- Time in Business
- Number of Customers Served
- Monthly and Annual Revenue Projections
Once you have your business information prepared, it’s time to reach out to one of our Denver Insurance agents so we can get you a quote and protect your business!
