We know what you’re thinking. Small businesses can’t afford liability insurance premiums because they’re small. If that’s true, they can afford a lawsuit even less. In fact the smaller the business, the more important the liability cover as one claim for damages from a member of the public could force the business to close.
That said, small businesses require less liability cover as they may not have employees or be at risk of malpractice. The following types of liability cover are important for small businesses.
General liability insurance
As the title indicates, general liability insurance provides cover for general claims made by members of the public for injury or personal loss. Should the negligence of the business cause such damages, it is liable to pay the claimant. The general liability insurance policy will cover the legal fees to defend the business. Some policies, however, will not cover the damages liable to be paid if the business is found guilty of such negligence.
If you run a small business with a few employees, it is essential that you pay workman’s compensations. This is a fund which covers medical costs and damages that arise if an employer is injured on the job. This may also be taken out as an employer’s liability insurance policy.
Food contamination liability insurance
If your small business deals with food, whether it is a restaurant or grocer, you will need to take out food contamination liability insurance. This protects your small business from claims of food poisoning or spoilt produce. It usually also covers produce that ruins as a result of power failures and other disasters that may affect the whole premises.
Poor workmanship liability insurance
If your business produces goods, it will need poor workmanship cover. While the title assumes that all faulty products are your fault, the poor workmanship liability policy for small businesses covers defective products. As these tend to slip through quality control now and then, this policy could save your business.
For a range of small business liability insurance quotes, fill in our online form and an insurance representative will contact you with options.