Commercial liability insurance benefits a business when there's an accident or lawsuit. It ensures small businesses don't have to cover unexpected losses completely out of pocket. Many times, small businesses forgo small business insurance because they think they can't afford it. In fact, the thing small businesses truly can't afford is a lawsuit, which can pop up without much warning. A commercial liability insurance policy enables a business to defend itself.
Commercial liability insurance (Commercial General Liability Insurance) offers protection for your employees while they work and engage with the public. For example, if your employee goes to a client's workplace for a meeting, and the client trips over the employee's equipment, your policy can help pay for the damages. With commercial liability insurance, the business is protected and its employees are, too. This type of assurance is priceless to many businesses.
If a business uses equipment that can hurt others, it's important to properly train employees to use the equipment. Commercial liability insurance isn't a replacement for good training and common sense, but even when your business does everything correctly and responsibly, accidents can still happen.
That's why business insurance is a necessary business expense. It should be part of every business plan and can help save your business money in the long run.