As a business leader or business owner, it’s important to be aware of the various risks and liabilities you face and how best to protect yourself from them. One key way to minimize your risk is by having adequate liability insurance for your small business. Liability insurance can help cover damages that arise from injuries, abuse, libel and slander, lawsuits, misunderstandings on promises made in contracts – pretty much anything related to protecting assets, such as property damage or customer data loss. But with so many types of coverage available at varying price points, what kind of policy do you need? How do you know if it’s worth the cost? In this blog post, Tommy Shek explores these questions so that you have all the information needed when making an educated decision about purchasing small business liability insurance.
Do You Need Small Business Liability Insurance? Tommy Shek Answers
According to Tommy Shek, small business liability insurance is a type of policy that provides protection for your business in the event of being sued or held legally responsible for damages caused to another person or their property. It can cover expenses associated with court costs, settlements, and judgments, which can help you avoid financial ruin if faced with potential lawsuits.
Having small business liability insurance may be required by law, depending on the industry you’re in, as well as what types of activities your company engages in. If you own a business that works closely with customers or clients, then it’s recommended that you carry this type of policy. Additionally, certain professions, such as lawyers and health care providers, are typically required to have this form of coverage due to the risks involved within their profession.
The types of coverage available vary depending on the insurance company but generally include protection for bodily injury liability, property damage liability, advertising liability, and personal and advertising injury.
Bodily Injury Liability provides protection against claims associated with injuries that occur due to the negligence of your business or its employees. This type of coverage helps cover medical costs as well as legal fees if someone decides to sue your small business for damages from an accident caused by you or one of your employees.
Property Damage Liability provides protection in the event that your company’s negligence leads to another person’s property being damaged or destroyed. This type of coverage can help pay for repairs and replacements needed to restore the property to its original condition.
Advertising Liability provides protection in the event that your company is accused of libel, slander, or copyright infringement due to an advertisement or promotion that was distributed. This type of coverage can help cover legal fees and costs associated with defending yourself against these types of claims.
Personal and Advertising Injury, as per Tommy Shek, covers your business if it’s accused of wrongful eviction, false arrest, malicious prosecution, or invasion of privacy. This type of coverage can help protect you from having to pay out large settlements or judgments stemming from such charges.
Tommy Shek’s Concluding Thoughts
According to Tommy Shek, small business liability insurance can be a lifesaver for companies large and small that face the potential risk of being sued or held legally responsible for damages caused by their negligence. It’s important to understand the different types of coverage available and choose a policy that offers the best protection for your business. By making sure you have the right type of liability insurance, you can rest assured knowing that your small business is adequately protected in case of any legal matters or disputes.