If you’re self-employed and putting your blood, sweat and tears into that first start-up, small business liability insurance can be one of those things that seems like it’s a big deal – and it is. That is not to say, however, that it needs to be a source of stress.
What is Small Business Liability Insurance?
Business general liability insurance protects both your business and personal assets against several types of claims that frequently target small businesses: advertising injury, bodily injury, property damage, and personal injury. Judgments in these types of cases are often large, and can spell the end of the road for a new venture. Even in cases where your business is not found liable, the legal fees associated with defending against these claims can be crippling.
Do All Businesses Need Liability Coverage?
The legal answer to this question may vary from state to state, but the common sense answer is universal. Regardless of how you choose to set up your business, some form of general liability coverage is essential. This is particularly true if you’re part of the estimated 78% of small businesses that are structured as either a sole proprietorship or a partnership.
While the aforementioned business structures may provide tax benefits and a litany of other advantages in some areas, they certainly do not offer any special protections to the small-time, self-employed business person. As a matter of fact, these types of business set-ups do the exact thing that someone in that position doesn’t want – leave them personally liable to cover any judgments that the business is unable to pay. If that doesn’t erase any doubts you may have about the necessity of small business liability insurance, then nothing will.
How Much Does Small Business Liability Insurance Cost?
Fortunately, even though there is so much at stake, the price of liability insurance for small businesses is usually surprisingly affordable. Depending on such factors as the type of industry you work in, the number of employees you have, etc. it is possible to find general liability insurance quotes for as low as $20 per month in some cases. That low, monthly premium usually covers both judgments and defense costs arising from covered claims. You won’t find cheaper peace of mind anywhere.
Where to Find Liability Business Insurance
Small business commercial insurance is offered by all general liability insurance companies. Shopping can easily be done online or with the help of an agent (although doing it yourself will save you money in most cases), and is usually a quick, relatively-painless process. So long as you account for all of your company’s unique liabilities when obtaining quotes, getting the right small business liability insurance policy can be every bit as easy as it is important.