What's Liability Insurance?


Owning and operating your own small business can be one of the most exciting opportunities you have to get your idea off the ground and turn it into a flourishing company. But being a small-business owner can also make you liable for a number of dangers and risks that come along with your business and industry.

Liability Insurance helps you mitigate the risks you face in your industry and can be the difference between paying out-of-pocket for a costly lawsuit, or being able to operate your business without being overly concerned about a mishap demolishing your bottom line. The peace of mind that Liability coverage brings is what makes this type of insurance one of the most popular forms of small business insurance there is.

Does My Business Need Liability Insurance?

Take a moment to consider some of the risks a small-business owner will face. For example, imagine a small shop selling hotdogs. Many people would guess that a business like this comes relatively risk-free – but what happens if a customer gets ill from one of the products and sues? Without liability insurance that protects the business's bottom line from lawsuits alleging illness because of their products, our little hotdog shop could be forced to pay damages out of its owners pockets and ultimately have to close. Plus, if a customer became sick after eating your food, wouldn't you want to be able to cover their medical expenses anyway? Liability Insurance makes it feasible without putting you out of business.

You may not be in the hotdog business yourself, but the fact is that any small business can be liable for a tremendous number of unforeseen mishaps. You can't stop everything from happening, but you can make sure that you're covered in case something does go wrong. There are many types of Liability Insurance available, each tailored to specific risks you might face within your company or industry. General Liability coverage, Professional Liability Insurance, and other forms of liability insurance can keep you protected, so you can get back to simply running your business.

How Liability Insurance Protects Your Business's Bottom Line

Most small business can benefit greatly from Liability Insurance in one form or another. Speaking with a trusted small-business insurance agent can help you determine what insurance you need, how to get covered easily and efficiently, and how to protect your business at a cost you can stomach much better than a rotten hotdog.