10 Secrets How Business Liability Insurance Can Save Your BusinessFebruary 17, 2011 - Author: willk
If you’re a business owner, it’s highly unlikely that you’re enthusiastic about the protection offered by business liability insurance. In fact, just the opposite is probably true. The value of getting adequate liability coverage may appear to play such a small role in business deliberations that you may even postpone getting it. In the event that you did get insurance, it’s possible that you did not really think much about how this insurance actually had the potential to save your business from closing down.
Some Worst Case Scenarios
Although these are imaginative scenarios, they are not entirely unrealistic. Similar risks might be associated with your business.
Scenario one. Your sales person on a call accidentally knocks down a shop display knocking down rare vases valued at $15,000 each.
Scenario two. A shopper in your store slips on a toy left by the child of a previous shopper and suffers a head concussion requiring immediate medical assistance.
Scenario three. The driver of your van is smoking on the way to make a delivery, sets a fire, and destroys a custom-designed computer purchased by a graphics design company. By failing to deliver the purchased computer in time, the customer is unable to fulfill the requirements of a six figure advertising contract, loses their small business and sues you.
Although you had nothing to do with any of these disasters, do you think those injured in some way will see things your way?
10 Secrets That Might Save You From Going Out Of Business
There are numerous ways to protect your company from accidentally closing down and here are 10 secrets how business liability insurance can save your business.
1. Honesty is important when informing the insurer about a claim. Insufficient information may result in a claim being denied.
2. When shopping for insurance, don’t minimize potential risk factors in your business to save costs.
3. Find an independent insurance broker to give you expert advice on exactly how much coverage you need. Unless you’re well-versed in insurance matters, it may not be prudent to simply make arbitrary decisions on how much coverage you need. Why not use the expertise of someone who knows how liability issues work?
Additionally, you may be able to save money because of the agent’s recommendations.
4. Don’t just pick the most convenient insurer, but take the time to create a small list of the best providers and evaluate who can provide you with the best coverage for your business risks.
5. If things change in your business—for instance, you expand into new markets, develop a new product line or embark on a high risk business project—inform your insurer to see if it is necessary to get more coverage.
6. If you’re operating out of a limited budget, consider increasing your excess to reduce premium rates rather than limiting your coverage.
7. Take as many safety measures as possible on your business premises to reduce the possibilities of bodily injury or property damage. These safety measures can range from properly locking up your business premises after hours to conducting accident safety drills for employees.
8. Simplify your insurance administration by using a single provider for all your business insurance needs. In addition, you might be eligible for multi-policy discounts.
9. As a business person, you may habitually think of cutting business overhead costs and increasing profits, but this shrewd way of thinking should not tempt you into either choosing a cut rate provider or underinsuring. Sometimes, it’s worth spending more to get sufficient coverage.
10. When deciding on your insurance needs, inquire about how you can get additional coverage that may also be offered.
Business liability insurance is important to consider carefully. In fact, getting the right coverage may save your business in the event of a costly accident.
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