There are very few actions associated with running a business that could bring the operation to a halt quite like an expensive lawsuit. One of the biggest fears of all businesses large and small is exposing themselves to liability, which can occur in multiple ways in our contemporary litigious economic marketplace. Businesses that utilize rolling stock vehicles in business functions obviously know they need automobile insurance, usually at increased coverage amounts because the potential for major claims can be a result of an accident when the company employee driver is at fault. But, company vehicle insurance is just the beginning of the insurance needs of any company. Workers compensation protection is also a governmental requirement that many employers want to avoid, but have a difficult time operating a business without it unless they are exclusively self-employed or provide remote services. For the typical brick-and-mortar store, the most essential insurance is often premises liability coverage.
Why Businesses Need Premises Liability Insurance
All businesses operating in a physical structure are responsible to their clientele for ensuring a reasonable duty of care for the protection of their customers or store visitors. Even something like an icy walkway or parking lot injury can matter greatly when it comes to premises liability because slip and fall injuries are probably the most common of all premises liability claims. Falling objects and wet walking surfaces inside the store can cause injury as well, and stores that carry a big inventory in limited space could have significant associated risks. Typical retail stores will always need sufficient liability insurance, whether it is an individually specific policy or part of a general business insurance plan.
General Business Insurance
Many times a standard business plan will include liability protection from individuals are injured on the property as well as provide coverage for business operations when damage occurs to the building. This is primarily used by business operators who lease or rent a physical structure in daily operations that could be suffer a fire or be subject to damage that occurs in standard business operation. The size and scope of the business can make a big difference, but the type of business may indicate this insurance need more than anything else. Customers who get injured are not the only parties who may file suit, as property owners can sue as well when their building may be damaged. All lawsuits can be expensive when attorney fees are also included in the total amount, and most general business insurance plans will also include money for legal fees and court filings in defense of a case.
Home Based Businesses
There are probably more home-based businesses operating now than any other time in history. While business operators understand their insurance needs regardless of the business size, it may be a good decision to add extra coverage for specific liability when operating a home business even if the business operator owns the house. Homeowners insurance policies are usually inclusive of practically every liability exposure in a typical household, but businesses that use homeowner protection may not be covered for liability when injuries are claimed that occurred specifically regarding some business function on the property.
All serious business owners who are planning for growth or long-term success will evaluate their insurance needs on an annual basis when it comes time to reassess an operating budget. This is as important for existing businesses as it is new startups, and often times additional coverage is a good decision when liability is weighed against the expense of coverage. It is important to remember that lawsuits are relatively common and regularly filed based on borderline or frivolous claims by a plaintiff. The best plan is being as protected as possible when it comes to insurance, and especially when premises liability could be a serious issue. Business operators who are interested in this protection can click here for advice on their legal liability needs for their business.