Grillo & Associates highly respects each and every one of our clients. However, when a business owner asks us, “Is business liability insurance really necessary?” we are tempted to reply, “How important is it for you to stay in business?” The need for liability insurance for every business is extremely important, a no-brainer if you will. In this posting, we will cover all the reasons it is not an option, but a necessity. Another question our professionals are frequently asked is, “Can you get me cheap business liability insurance?” Here again, let’s exchange the word “cheap” for “affordable” and/or “budget friendly”. And, yes, that very point will soon be addressed as well. Read on!
The number one reason every enterprise needs business liability insurance is that it helps to protect that company from certain types of lawsuits and risks that can occur during the course of a normal business day. Those protections include:
- Bodily Injury: if your premises are open to the public, such as a restaurant, retail store, or grocery, you and your business run the risk of being sued if a customer sustains an injury while in your store.
- Property Damage: if someone else’s belongings are damaged while “under your roof”.
- Personal Injury: this coverage protects against verbal insults against your character, such as libel or slander.
Companies that forgo having this type of insurance coverage risk having to pay out of pocket should a lawsuit be brought against them. This action can put all but the largest enterprise out of business. More importantly, with this type of coverage in place, business owners can turn their entire focus to running a successful business that continues to grow.
Sometimes in the course of a transaction or contractual agreement, other businesses or organizations may require your company to have, or to upgrade, your existing business liability insurance. This occurs most often in the construction trades, when a smaller company, set to level up and contract with a larger, more established firm, will be asked to increase their business liability limits. Again, this frequently occurs when the smaller company has very basic coverage, having opted for cheap business liability insurance when they first incorporated. Expect this type of request as well when your business leases new office space and/or applies for a professional license.
By now, you’re likely sold on the idea that you need business liability coverage. At our confidential consultation, in addition to learning more about what makes your business unique, here are some of the questions our team is likely to ask:
- How many people are employed at your company?
- Where is your business located?
- What does your state require for insurance?
- Is liability insurance required? If so, why types of coverage do your business need to be protected by your business liability insurance policy?
In order to prepare to submit your insurance request, every insurance carrier will want to know particular information about your enterprise, including:
- What type of business do you have?
- How long have you been in operation?
- Do you have current or previous business liability coverage?
Carriers will use this information to determine the level/amount of risk your business imposes. They will perform an analysis of your type of business and research your business insurance claim history. Some businesses pose a greater risk than others, and that may influence the cost of your policy. Be aware that if a business has a long and large insurance claim history, it will be difficult for that business to obtain liability coverage. If this proves to be the case, a business may have to forget about any chance of obtaining cheap business liability insurance. On a positive note, the vast majority of Grillo & Associates’ customers are able to obtain the business liability insurance coverage they need at a price that is very budget-friendly.
Be aware that general business liability insurance coverage will help to protect your company up to the liability limits of your specific policy. Should a liability claim exceed these limits, you’ll likely have to pay the difference. Depending on the type of business you have, Grillo & Associates may recommend that you additionally consider commercial umbrella insurance to extend the limits of your business liability coverage to ensure your total peace of mind.
Learn more! Give us a call today to schedule your consultation!
