Liability Insurance...does your business need it?

Let me start by saying that I am not an insurance salesperson, nor do I have any connection to those who are. I get nothing in benefit from writing and sharing this.

I have just signed my first business liability insurance policy. I really didn't think that I needed one, but after my business started growing, I realized just how much I do need insurance. In reality, if you are running a business, you need this insurance. The cost will vary widely, but here's some questions for you to consider:

1. If you conduct business in your home, and a client trips and falls during an appointment, who pays for the medical bills? (Hint: it's not your homeowner's insurance)

2. If you sell products and someone is injured by one, who pays to defend you and your company in the lawsuit? (Hint: it's not your direct selling company)

3. If you hold parties in someone's home and apply product to their skin, and they have a severe allergic reaction, who is responsible for their medical payments? (Again, it's not your company!)

4. If you accept credit cards and one of your clients has their identity stolen, who pays when they sue you?

5. If you exhibit at events and your booth falls down and crashes through the table of antique teacups behind you, who pays to replace them? (It's not the event planner or the exhibit space)

6. If you advertise something and it turns out to be false (do a google search for Airborne cold remedy), who pays the class action lawsuit?

7. If you take your jewelry display to a customer's home and it falls over on their child, injuring them, who pays for the medical bills or the negligence lawsuit?

Consider these risks as you conduct your business. Liability insurance can usually be had for under $500 a year. It's a low price to pay for the reassurance that a customer won't be able to wipe out your business and personal assets in a lawsuit.

Remember, that while your product may not be at fault and you may not be at fault, you still have to pay the lawyer to defend you in court. That could be $10,000 or more. Your company may defend you against a product suit, but your personal negligence and your business conduct is all you. Take a look at business liability insurance now. Your future may depend on it!

Lisa Akers
Be Still & Knit, llc
Classes and clothing for children and the women who love them.
(303) 345-7620


ginah said...

This article presents many excellent points that I had not considered. I will be calling my insurance agent next week.

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