local insurance agencyWhen running a small business, you will likely find yourself worrying about liabilities. Liability risk is one thing that can take a small business from booming success to complete failure in a relatively short period of time. Depending on the type of business that you have, you may be more or less at risk of liabilities, but it is always something small business owners need to consider. But that is why small business insurance companies exist.

If you have not already worked with a local insurance agency to ensure that your small business is protected against every possible event, you need to do so now. Most likely, you have been covered in the past, but perhaps not as well as you should be, or perhaps with rates that do not quite work for your business model anymore. Maybe you are expanding your business, and in turn, expanding your liability risk. The fact is that there is much that you need to do in order to protect your business from these risks. Let’s look at the steps that you should take.

Work With A Good Insurance Agency

When deciding on whether or not to work with a local insurance agency, assess them carefully and ask about your different options in terms of commercial insurance. You will need their guidance; they are the experts, after all. But you can still do research in order to ensure that you are not being pushed in the wrong direction. Small business insurance coverage is really the thing that will make the biggest difference in terms of your liability risks.

Commercial general liability insurance, otherwise known as CGL insurance, is meant to protect your business if you are found legally liable in a wide variety of different circumstances. These include property damage or bodily injuries to a customer, a supplier, or a separate third party. You need to consider what you are paying for insurance, too, but do not settle for less in order to save money. You will end up paying much more if you are held liable and don’t have insurance under any of the above mentioned circumstances. Consider how much legal defense fees alone could end up costing you, let alone a lost civil suit or a settlement.

Maintain Your Coverage

This may seem obvious, but it is an important factor to consider. If you work with one local insurance agency and do something that causes you to lose your insurance coverage, you may find it difficult to get a new policy. In many cases, losing insurance coverage with one company means that other companies may not be willing to insure you. There are several issues that can lead you to lose your insurance. This would include intentionally harming consumers, employees, or businesses; using company funds for personal expenses; offering invalid guarantees; or failing to comply with corporate regulations.

Operate As The Correct Entity

Your small business may not even be operating as the correct entity, and you should make sure that it is before you get in touch with a local insurance agency. For example, if your business functions as a partnership but is listed as a sole proprietorship or LLC, you could end up losing your liability coverage. There are different levels of insurance coverage for each type of business, too; you need to know that you have the right level for your purposes.

Have Personal Injury Coverage

This is perhaps the most important type of liability coverage that you need. Personal injury lawsuits can be devastating for small businesses, both financially and in terms of their reputations. Personal injury coverage should cover actions that injury outside parties or employees whether they are directly or indirectly connected to your business. If the issue occurred within your company, outside it, or as a result of your company’s actions, you will be covered.

The last thing you want is for your small business to fail because you did not have liability coverage. It does not matter if you felt that your business was not responsible for the incident in question. Even the risk of being held responsible and the resulting legal battle that may follow, could be seriously damaging. Do not let yourself get caught without liability coverage.