Business Liability Insurance policies are crucial to safeguarding the future of your company. Whilst this may seem to be a straightforward, totally obvious declaration, many businesses these days are attempting to save money here and there, and as part of this process they decide to forego their Business Liability insurance cover.
To put it simply, there is every possibility that your business insurance cover could possibly save your business sooner or later, and therefore you should make certain that you invest in it. We do our best to dissuade people who run businesses from thinking that they can protect their business simply by making their premises safer and more secure for their customers or even just reviewing their product range and being as sure as possible that their products are also very safe and secure.
By taking these steps they then feel they are able to avoid the need for Liability Insurance protection. However, the problem is that it is impossible to exclude each and every feasible threat to your company as it becomes way too time-consuming and too costly to try and do this, and the end result is that the time spent in trying to achieve this inevitably costs the company more money in the long run than the cost of their Liability Insurance premium. In addition research will show you just how important it is to protect yourself and your business from claims, as history has shown there is every possibility that your business can be brought to its knees simply through a Liability Insurance claim.
The danger of encountering these lawsuits, whether legitimate or not, continue growing as our society becomes more litigious and more closely follows the trends established in other Countries for this type of action.
It should be noted that while one reason to have Liability Insurance is to pay for these types of claims should they happen, a more practical reason is that when a claim is made against you, the insurance company steps in to provide and pay for your legal defence. This factor alone can be what keeps a small business afloat if they get sued.
Buying Liability Insurance protection will allow you to fully concentrate on running your business in the knowledge that if anything goes wrong your exposure is totally covered by your Insurance company.
Premiums, as a general rule, are based on the type of business you run and common sense dictates that those types of businesses that pose a higher risk factor will pay higher premiums. Another factor considered by insurance companies that directly impacts upon a new business is the experience factor ( or lack of it).
Businesses with no previous experience are likely pay a higher premium since it is widely believed that they pose a higher risk than someone running a company who has years of experience.
A third factor is that most Liability Insurance commercial rating programs have minimum premium requirements and until your operation gets bigger, the cost of the coverage will seem inordinately high compared to your first year’s income.
However, the fact remains that business insurance remains important because things don’t always go as planned and accidents do happen, even when they are not your fault, if they happen on your premises then you will be very happy that you had your Liability Insurance protection in place.