Is General Liability Insurance Important to Your Business?

Is general liability insurance important to your business? Of course, it is! There is possibly no more important business insurance coverage than general liability insurance. In fact, most people, when they think of business insurance they’re thinking of commercial general liability.

However, when you first think to open a small business, you don’t immediately think about the insurance protection you’ll have. No, you think of the many other interesting ways to invest your start-up capital.

So, again, is general liability insurance important to your business? Well, it’s more important than the swag you’re thinking of buying, or the matching t-shirts, flashy flyers, or professional logo design. These aren’t really trade-offs, however. 

If you are really wondering if general liability insurance is important, let us provide you with some perspective.

Why is general liability insurance important?

Over time, the small business owner will become aware of the basics of the general liability insurance policy, but they won’t imminently know why it’s important. Here are some reasons why liability insurance is important for your business:

1 | Exhibits you’re a mature and stable business

As a business owner, you want to show your customers that you’re responsible and trustworthy. Carrying a general liability insurance policy does just that. It shows you understand the risks your company faces during your daily business operations. We can give you a certificate of insurance to help you prove to customers that you have liability coverage.

2 | Protection for your business and livelihood

• Represent your business
• Meet with clients face to face
• Work on a client’s property

3 | Allows you to sign contracts & leases

Consider it an investment in your business

It’s easy to look at hip new startups when you are kicking off your new venture, and you might be influenced by some of the trendy new ideas coming from some of the more exciting new companies. But it isn’t time during the early years to make fool-hearty decisions with your money. You need to prioritize your spending on the things that will prove productive, and provide you protection from the risks you’re going to need to undertake.

Things like your general liability insurance!

We say this in fun, but there is a hint of truth to what we say. For all other things, you should consider the following:

• What investments add to the long-term value of my company? If you place your money on something that is unproven, has a low likelihood of success, but has a high price tag, you may end up regretting your choice … and that money isn’t easy to recover.
• Does the business have an immediate need for the purchase? Personal inter-office transportation units may sound good, but they do not have an immediate need for your business.
• Can your business afford the long-term costs? Blogs, social media, and search engine optimization require a lot of time, research, and commitment. It requires investments over a lot of time to realize the benefits. If you need a more immediate return on your investment, then this type of investment might not be prudent.
• What are the potential hidden costs? When you purchase furniture or invest in social media, there may be hidden costs in the form of worker’s compensation insurance or cyber liability. You need to explore the potential hidden cost or exposure of your investments.

The bottom line

Making wise choices for your small business is always beneficial to long-term success, especially in the early years. There are a lot of things you can spend your money on, but one assures your business will have a future even when disasters strike.

General Liability Insurance offers your business protection against various risks. If you’re sued over third-party bodily injuries, property damage, and reputational injuries, this policy can pay for legal expenses that would otherwise leave you scrambling. Plus, nearly every business needs it to sign contracts or rental leases.

If you’re just getting started, you’ll have a lot of questions before you buy business insurance. If you want some help, contact us, or start your quote online.