Having financial liability insurance is imperative for your company. It safeguards your company’s financial resources in the event of a work-related claim, such as a lawsuit. It also protects you from absurdly high legal costs as well as other associated expenses.
How Can Financial Liability Insurance Help My Business?
Do I Need Liability Insurance? Yes, Financial liability insurance safeguards your business profits and pays for the cost of medical expenses incurred a customer, client, or employee injured on your property. This type of insurance also protects your business paying for any costs incurred for legal defense, settlements, or awards that you are required to pay. These expenses may include punitive damages and non-financial losses incurred your employee.
What If My Business is on a Commercial Real Estate Property?
If your business is located on a commercial real estate property, financial liability insurance would be beneficial to you as well. It will assist in covering any losses caused flooding, fire, natural disasters, and even mold.
How Much Does It Cost?
The cost of financial liability insurance is largely decided your company’s apparent risk levels. A construction company, for example, who works with bulldozers and forklifts will pay extra for insurance compared to someone who doesn’t have costly machinery. This is because it is more risky for employees to operate large machines.
Businesses that are less risky may want to take into account a business owner’s policy (BOP) that integrates financial liability as well as property insurance at a lower cost. Exclusion clauses should be included in any liability insurance policies. This will help prevent buying the same coverage from different insurance companies, thus also lowering costs.
What Are Some Benefits of Financial Liability Insurance?
Here are some examples of how financial liability insurance can benefit your business:
Covers Bodily Harm or Injuries
On-the-job injuries can occur at any time even if you plan carefully and take the best precautionary measures. For instance, if your employee or customer tumbles over due to an object being on the floor, it can possibly harm them. If they are badly hurt and you are legally responsible, financial liability insurance will cover third-party bodily injury claims. It will protect you as well as your company.
Legal Costs
Legal expenses can quickly add up, if you don’t have a defense strategy in place. If you are held liable for an incident, financial liability insurance will cover the cost of a lawyer, if required, even if the claim is without merit.
Financial liability insurance will also cover your defense costs without lowering your restriction of liability. If you own a small business, expensive legal fees can be financially devastating for your company.
Additional Payments
If a lawsuit is made against your company, there are numerous expenditures that may arise, many of which you may be unaware of. This includes hidden costs and additional costs that frequently accompany protecting you and your company against complaints. This can include the following:
If someone files a claim against you, financial liability insurance will pay for your legal defense costs.
It will also cover lost wages and other expenses incurred due to investigation of the complaint filed against you.
Damage to Someone’s Property
If you are renting commercial real estate, damage to the property an employee could possibly occur. Property damage can result in large expenses for which you may be held liable. If an accident happens, estimating the cost of the damaged property can be difficult. This is why it’s a good idea to get financial liability insurance.