Do you cross your fingers and just hope no one gets hurt at an event you are participating in or planning? How much is peace of mind for you and your family worth?
Today, many small businesses operate without liability insurance, with the exception of worker’s compensation insurance, which is required by law. In most cases, business owners simply want to cut down on operating costs, but in today’s litigious climate operating without liability coverage is a highly dangerous practice.
Liability insurance is designed to offer specific protection against third party claims. Payment is not typically made to the insured, but rather to someone suffering loss who is not a party to the insurance contract.
General Liability insurance covers claims of bodily injury or other physical injury or property damage that may occur on your premises or at other covered locations where you normally conduct business and are caused by either direct or indirect actions of the insured. In addition to covering the claims listed above, GL policies also cover the cost to defend or settle claims – even if the claims are fraudulent.
While many small businesses do not secure general liability insurance due to the cost of premiums, the out-of-pocket costs in the event of a claim, for a legal defense or settlement can far exceed premium costs. In many cases, the costs of a claim could be enough to shut down a small business. Just one claim can wipe out what took years to build.
Bottom Line: Without liability insurance, a business can take a major hit from the litigation process and the owner’s personal assets can become vulnerable. Businesses must consider all potential risk exposures when deciding how much coverage is appropriate, required and cost effective. An EPA Insurance Program Director can assist you in this evaluation.
What is liability insurance and do I need it? - (Read 1,173 Times)
Posted: May 12th, 2009 at 07:03 pm
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