A woman walks into the restaurant you own, and is tripped up by a nail sticking out of the floorboards. She seems fine, but a week later she is back with an attorney and a neck brace. Apparently she hit her head in that fall, and isn’t doing so well. Or perhaps you are a mechanic and a customer wandered into your shop and cut his leg. Perhaps you own a pet store and a little girl got a nasty bite from sticking her fingers in the mouse cage. Whatever your business, liability is just a part of the cost of doing business.
It is almost impossible to run a business without liability insurance, and in many places it is a legal necessity as well. Business insurance covers liability cases so that a risk you cannot afford (like paying someone else’s medical bills) is replaced by one that you can afford (such as a monthly premium).
Other types of liability include fire legal liability, which means that you are the liable party in the case of a fire. If you forget to turn of a space heater before you head home for the night and this results in damage to your landlord’s property, then you are liable and the damages are covered by the fire legal liability part of your business insurance.
Liability is not the only type of insurance to be covered by business insurance. Business insurance can also function like a home owner’s insurance policy for the office, protecting the building (if you own it) and the equipment and possessions that are inside. What responsible homeowner does not have his home protected against fire? Shouldn’t the same precautions be taken for your business as well?
If your business were to be destroyed, a business insurance policy would cover things like desks, chairs, seating in your reception area, computers, equipment, and anything else of value that is a part of your business operation. Business insurance can also provide coverage against things like loss of income, earthquakes, and in some areas even flooding.
If a natural disaster takes your business away from you, then your business insurance policy is there like an umbrella, helping to protect you and your family from the losses and breaking your fall, so to speak. Your business insurance policy is there to help you rebuild and go on with your life.