You always hear about general liability insurance for business owners. You might not have it because you don’t necessarily think it is required for your business. The requirement depends on where your business is operating, but if you look at the benefits that you will get from having it, you will be convinced that you really need it. Here are some reasons why general liability insurance for contractors is a must.
This type of insurance covers a lot. This includes claims for bodily injuries resulting from the use of products and services offered by the business. It also includes damages to the property in which the business currently stands.
However, it is important to remember that this insurance only covers third parties. For injuries sustained by your employees, you need a different type of insurance coverage. The property damage might be covered, but it is quite minimal. Since you don’t own the place as a contractor or a small business owner, the insurance will partially cover the cost of any damage.
You will probably be sued if these problems occur. When you are financially not ready to pay for the cost, it could be a big problem. The good thing is when you have insurance, it is easier for you to deal with the lawsuit. You know that your insurance will most probably cover the legal fees and the entire expenses incurred because of the legal proceedings. Obviously, you need legal help in this situation, and you will feel confident getting the best lawyers to do the job because you have insurance to cover whatever the cost of the services will be.
Your business could end up closing
For now, you don’t necessarily see the value of this type of insurance. You think that you already have enough insurance to cover the property if something goes wrong. You also think that you have insurance coverage for your employees. You even provide them with health care. Before you feel too confident, you should know it is not enough. The bigger problem happens when you are faced with complaints from third parties like customers who have used your products or have been injured in the area in which your business is operating.
The claims could be very high. You will be astonished at how crazy some of the claims are. You can get a lawyer to fight these in court or at least make negotiations with the other party. Even if you settle, you would still spend a lot of money. It helps a lot if you have this insurance since everything is covered. You can breathe easier knowing that you won’t have to shell out more money or even end up closing your business because of the associated costs.
FYI: I worked at a dead end cubicle job from 2005-2011 for about $30,000 per year. I went self-employed in July 2011 and make between $70,000-$90,000 through blogging, professional pet sitting, hubby's reffing, and our rental home. If you’d like to start your own site (link to my free step-by-step guide), I highly suggest checking out Bluehost (my referral link with a nice discount for you, PLUS a free custom header banner from me!). Please contact me any time at budgetingfunstuff*at*gmail*dot*com with questions or just to brainstorm! I’d love to help!