Why Do You Need Liability Insurance? Charles Spinelli ExplainsA vast majority of small business owners are clueless when it comes to business insurance. They don’t know if their business is adequately insured or even insured at all. About 30 percent of them admit they may lack coverage, and around half say their business is unprepared to handle potential risks. A lot of business owners also admit that there are too many types of insurance to understand. They also have a hard time figuring out which ones they need.
If you are a business owner, Charles Spinelli says some scenarios perfectly show the vital importance of general liability insurance.
For example, you have a small business, and it 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 an A/C unit at a client’s office. Your ladder slips, and the air conditioner breaks. General liability insurance has you covered.
If you employ another person, even if they are part-time, there are potential legal problems. Another example is if your employee makes a costly mistake or often fails to come to work. They may sue you if you fire them.
The lawsuit may accuse you of anything, from wrongful termination to sexual harassment. If you are sued, liability insurance can help you pay the legal fees. It can also help you avoid cleaning out your checking account.
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, Charles Spinelli explains that liability insurance protects you from financial risk.
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.
Say you own a small construction business. It’s only natural that one of your biggest worries would be liability insurance costs. Now, you’ve heard that your local government is in search of a construction company to build a public school.
According to Charles Spinelli, the time to secure liability insurance is before you bid for the job. In fact, everything should be in place even before bidding begins.
The saying that “there’s nothing new under the sun” applies to this. Charles Spinelli says there’s very little chance of using advertising slogans or taglines no other company has used. You’ll likely get into trouble when a slogan or phrase you used has been trademarked or copyrighted.
What if you use trademarked or copyrighted wording, even unintentionally or accidentally? The trademark or copyright owner can sue you. If you have general liability insurance, you pay legal costs easier.
Charles Spinelli shares important information on human resources in his blogs. Read them on this page.