Charles Spinelli: The Significance of Liability Insurance
A majority of small- to mid-sized business owners are clueless as to whether or not their business is adequately insured or even insured at all. According to Charles Spinelli, about 30% of them admit they may lack coverage, and around half say their business is unprepared to handle potential risks. Many business owners also say that there are too many types of insurance, and they don’t know which ones they need.
• Use of copyrighted material: There’s very little chance of your company using advertising slogans or taglines that no other company has used. You’ll likely get into trouble when a slogan or phrase you used has been trademarked or copyrighted. Charles Spinelli explains that if you use trademarked or copyrighted wording, even unintentionally or accidentally, the trademark or copyright owner can sue you. General liability insurance can help you pay legal costs.
• Employee lawsuits: If you employ another person, even if they are part-time, there are potential legal problems. For example, if your employee makes a costly mistake or often fails to come to work and you fire them, they may sue you. The person who filed the lawsuit may accuse you of anything. You may be sued for wrongful termination, sexual harassment, or any other violation of the law. If you are sued, liability insurance can help you pay for the legal fees. It may also help you avoid cleaning out your savings or checking account.
• Client injuries: No matter where and how you interact with clients, there’s always the possibility that injury could occur. It may be an incident that’s as simple as a slip or as unexpected as a client choking on a candy they got from a bowl on your desk. In either case, you should be aware that liability insurance protects you from a degree of financial risk.
• Damages to client’s possessions: If your small business requires you to visit a customer’s job site or home, general liability insurance could help you replace or repair anything you or your workers accidentally damaged. Let’s say you’re replacing or installing major electric appliances at a customer’s office. Your ladder slips, and the air conditioner breaks. General liability insurance has you covered.
• Bidding eligibility: If your business is growing, you are aware that some jobs require you to bid on them, and those jobs often require you to carry liability insurance. Let’s say you own a small- to mid-sized construction business and have always been somewhat worried about liability insurance costs. You’ve also heard that your local government is in search of a new construction company to construct a public school downtown. The time to secure liability insurance is before you bid for the job. According to Charles Spinelli, everything should be in place even before bidding begins.
Charles Spinelli shares important information on human resources on his blogs. Read them on this page.