Why do I need Business Liability Insurance?
If you run an operation with a business name, whether as a sole proprietor, limited liability company, or corporation, you are a target for a lawsuit. Business owners often equate the entity's value with the physical assets, such as tools, equipment, buildings, or inventory. Those things have a known and fixed cost, and if you wanted to, you could forgo insuring them if you have the cash to replace them. What you don’t see is what could hurt your business the most.
Why would someone want to sue me?
You never know when one of your employees might cause injury or damage to property while on the job. Nor do you know how much the loss will cost you. Nothing destroys the success or challenges a business's survival faster than a lawsuit. The nightmare can incapacitate the owner and quickly wipe out all the assets.
I work alone, and I am cautious.
We are human, and all of us make mistakes from time to time. That mistake could cause damage to the property of others while you are building, repairing, moving, caring for, or demolishing an object. Let's say you clean houses for a living. Who pays for that expensive vase you knock over? You walk dogs. One gets away and bites someone while in your care. A roofer drops a hammer on someone's head while they are exiting the structure. A plumber fails to tighten a valve after completing the job and turning on the water, resulting in a kitchen flood. This is why you need liability insurance.
Please tell us what business you operate, and we'll help you identify the types of risks you face. You might be surprised by how many you haven't even thought about. It would be nice to sleep well at night knowing that most of the types of injuries or damage you could cause while on the job could be covered by your commercial liability insurance.
How much does commercial liability insurance cost?
The annual cost varies depending on the coverage limit and business classification. One-person janitorial and landscape maintenance type businesses may pay as little as $750 a year. In contrast, an asphalt contractor with multiple employees and several large pieces of equipment might pay as much as $3,000 or more. The price depends on the principal owner's credit score, loss history, and length of time in business.
What do you need from me to get a commercial liability quote?
We would need things like:
- Name of the business
- Name of the owner
- Current insurance company information and loss history
- Projected annual earnings and/or total payroll
- Classification of the business you are licensed for
There might be more, but this would be a good starting point.
