When someone tells you do not to ask that question always remember that there is no such thing as a stupid question. We live in a world where we learn something new every day and we also learn from the questions which are frequently asked with regards to general liability insurance.
As a business owner, I am required by law to have liability insurance?
As a small business owner or an LLC owner, you are not required by law to have liability insurance. However, in certain circumstances, you may be required by a client or even for employee purposes to have a certain amount of liability insurance before the business relationship can move forward. On the other hand, when you are looking for business premises to rent the owners of the premises may require you to have liability insurance. Other sectors in the industry require business owners like plumbers to have insurance before they can provide you with an operating license.
How can lawsuits affect me as well as my business?
Even though it may be that LLC’s are protected from any form of lawsuits other businesses may not be as protected. However, as a small business owner lawsuit can become very costly this is where the insurance can cover those costs if you as an organization have insurance. Due to the cost of the lawsuit, it can place you and the business in debt without any insurance. Furthermore, if you lose the lawsuit and do not have the funds to pay the judge can put a lien on your property to cover the payment. The business can also possibly be driven into bankruptcy by a lawsuit.
Are my policy limits required to meet a maximum limit for liability insurance?
A company’s insurance needs to meet certain limits of particular insurance if those limits are not met then the company needs to start looking into the commercial umbrella policy. Furthermore, the umbrella assists in minimizing the cost of individual coverage for insurance. To make sure that your insurance meets those limits, consulting your insurance agent would be ideal as they will be able to assist you to the fullest.
Is damage to clients’ code and intellectual property covered?
This is highly dependent on the type of claim that you are submitting. Some insurances may cover damage to intellectual property and others may not cover it. For further information, you may need to consult your insurance agent.
What costs are incurred when I choose liability insurance?
The cost of liability insurance is dependent on the size of the business and other factors like your employees and the type of clientele you might have. Small businesses are most likely to pay between $1 to $2 million for the policy. Furthermore, this means that the policy will pay you $1 million for any one claim. However, with $2 million there is a limit on the policy which is one year.
The certification process for liability insurance
The certificates for general liability insurance are issued digitally. Furthermore, they can also be sent via email as soon as the policy is activated. The certificate can also be accessed online.