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How Investing in Insurance Can Save You Money

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Updated on December 3, 2022 by
How Investing in Insurance Can Save You Money

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As a small business owner, it's important to minimize risks to protect your business. One way to do this is by carrying general liability insurance. This type of insurance protects businesses from a variety of claims.

Here are some examples of how general liability insurance offers significant money savings in the long run.

Bodily injury claims

If someone is injured on your business property or because of your products or services, a bodily injury claim could be filed against you. In the event of a slip and fall accident resulting in injuries, a general liability insurance policy will take care of all associated costs so that you can ensure the financial security and continuity of your business. This essential policy will cover a complainant’s medical expenses.

Property damage claims

Property damage claims can arise from real property, such as buildings, and personal property, like equipment, furniture, and inventory. For example, you could be held liable if a fire damaged your office building or a customer's laptop was damaged while in your care. Instead of paying out of pocket, your general liability insurance company will pay to repair or replace the damaged property.

Advertising injury claims

If a competitor sues you for defamation, a general liability policy will cover the cost of legal fees, so you don’t have to. Advertising injury claims are based on allegations that your advertising has harmed another person or company. Some examples of advertising injuries include libel, slander, and copyright infringement.

Personal injury claims

Personal injury claims are similar to advertising injury claims alleging that you've harmed another person emotionally or mentally rather than physically. If you said something false about a competitor that caused them to lose customers, they could file a personal injury claim against you. General liability insurance will pay for their damages without dipping into your personal savings.

Medical payments coverage

Medical payments coverage is optional in most states, but it can be added to a general liability policy in some cases. This coverage helps pay for minor medical expenses if someone is injured on your business premises, regardless of who is at fault. If a customer trips and falls in your store and sustains minor injuries, medical payments coverage would help pay for their emergency room visit.

Product liability coverage

Product liability coverage is optional in most states but can be added to a general liability policy upon request. This type of coverage helps protect businesses from injuries or damages caused by their products. For example, let's say you sell toys, and one of the toys breaks while a child is playing with it and sustains an injury. If the child's parents sue you for negligence, product liability coverage will help pay for their legal expenses.

Final thoughts

Anyone who provides goods or services to others could be held liable for injuries or damages resulting from their business activities. Even if you're extremely careful and have never been sued before, it's always better to be safe than sorry. Lawsuits can be very expensive, and even if you win, it's always wise to have general liability insurance in place just in case something does happen.

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