6 Steps To Finding Reasonable But Affordable Liability Insurance For Small Business Owners

Can you afford not having insurance for your business? For example, here’s a statistic to put things in perspective:

About 90% of all businesses in the United States go through litigation at some point.

What’s more, nearly a third to a half of small businesses face litigation in any given year! Now, ask yourself the same question again – should my business have liability insurance? Yes.

Perhaps a big reason you may have been putting off getting liability insurance is the financial cost of it. After all, it can mean paying an average of $500 to $3,000 every year and you never get to test your insurance.

On the face of it what you’re paying for with any insurance policy is peace of mind should the worst happen.

With affordable insurance, you can save yourself from the potential storm of payouts and legal expenses following a lawsuit. Read on to know more about how you can secure a good policy without breaking the bank.

1. Research is Your Best Tool

Don’t assume your business won’t face any trouble in the future. Few things can put your company at risk more than unforeseen adversities.

You can face financial ruin if you don’t invest in good but affordable liability insurance for small businesses.

In fact, it’s as important to large corporations as to smaller firms.

Think Philip Morris, facing a product liability lawsuit (like it has several times already) that most likely will cost it millions of dollars.

Or how General Motors has already paid $2.5 billion for settlements and penalties.

All these go to show how liability insurance plays such an integral role in organizations of all sizes. And why you should get one ASAP.

But, with all the choices, (and claims about affordable liability insurance for small business) you might get overwhelmed. So, it pays to consult with your area’s trustworthy insurance agencies and insurance claims attorney.

It takes time, but at the end of the day, you will benefit from research.

This gives you a better idea of how much each company’s liability insurance costs. From there, you can now choose which one fits your budget and needs. It all depends on what coverage you’re looking for and how much you’re willing to spend to stay protected.

2. Compare Insurance Company Quotes

Insurance companies will convince you that their quotes are the cheapest in the market. If you believe them right there and then and don’t even compare prices, how sure are you that it’s indeed the cheapest?

This doesn’t mean you should just spring on the first offer you get. Research and comparison go hand in hand because they’re the only way you can determine just how affordable that particular liability insurance policy is.

Besides, there are now online comparison tools that help you quickly and easily compare insurance policy costs and rates. This makes comparing even easier since you can get multiple quotes with just one query!

3. A Broker Can Help

No one knows the hoops of insurance coverage better than an experienced broker or agent. Besides having vast knowledge of the types of business liability insurance plans available, they can explain in detail the specifications each program has.

Simply put, a broker can help you find the best and most affordable liability insurance for small businesses.

These pros factor in your needs and preference and compare them against programs fit for your budget. They can help you decide which package – and amount of coverage – is best for your small business. And of course, how you can maximize your benefits.

You might spend a little on a broker’s services, but you’re sure to benefit much greater with robust insurance tailored to your firm’s specific needs.

4. Know Exactly What You Need and Want

For small businesses, a liability coverage is important to prevent expensive costs of lawsuits and legal processes.

As important as this is ensuring you get only what you need and want. It’s important to know how much protection you need before making decisions.

This way, you can figure out which types of coverage you can get away without.

For instance, did you know that you can cut back on umbrella insurance if you’re at the lower end of the risk scale? Lowering coverage on this can help you cut down on your insurance expenses.

You should also assess your need for other insurance packages. How much personal, health, and auto insurance coverage do you need? If you don’t need more than the minimum, then why pay for something higher?

In a nutshell, you can make certain you get what you pay for. Plus, you won’t feel burdened in paying all your dues without knowing if you really need a certain coverage or not.

Today, anyone can file legal suits at the drop of a hat. Make sure you’re protected.

Affordable liability insurance for small businesses can help secure your company against unpredicted legal actions and penalties.

5. Look for Insurance Bundles

Insurance companies often give discounts when you purchase more than one type of policy.

For instance, you can get liability insurance coverage for your business. If you don’t have one yet, combine it with personal insurance. And don’t forget to protect your people with worker’s compensation and health insurance coverage too.

Insurance companies offer bundles to get the loyalty of their customers. Loyal customers get discounts and lifetime benefits. It’s a give-and-take relationship, but staying loyal to one insurer may reduce your premiums and fees.

So, if you’re a small business owner, it’s wise to buy insurance bundles from the same insurance firm.

Know Whether You Qualify for Special Insurance Programs

Some types of businesses qualify for special insurance programs and promos. You’ll never know unless you ask insurance companies about them.

So, don’t be shy. Go ahead and ask about these money-saving deals. Besides, you’re going to pay for it so it doesn’t hurt to be inquisitive.

Protect Your Interests with Affordable Liability Insurance for Small Business Now

For your small business, liability insurance coverage helps lower the risk of legal actions stemming from injury, negligence, and malpractice.

With this, you can protect your organization from thousands to millions of dollars in litigation costs. Any unnecessary expense is a big deal for small businesses and startups. As such, as early as now, protect your interest with the right coverage.

Want more legal-related information about doing business in the U.S.? Feel free to browse our extensive article database! You’ll find plenty of useful information there.