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4 Reasons to Consider Commercial Liability Insurance

As a business owner, you already have a full plate. Identifying new market opportunities, improving brand recognition, and meeting with clients are just a few of the tasks that consume your day. Thinking about commercial liability insurance might be the last thing you want to do, but it’s a critical consideration. At ISU-Armac, we work with business owners just like you and can quickly quote prices from over 300 carriers nationwide.

1. It’s Mandatory in Many States

Most states require small business owners to carry a commercial liability policy. But even if yours doesn’t, you should consider it a necessary means of protection.

In California, for instance, general liability insurance usually is not required. This state, however, does not cap liability lawsuit rewards. Without insurance, you could be personally responsible for a devastating sum of money in a liability claim. Some specific instances in which you may face financial losses include:

  • Stolen technology containing your clients’ personal information
  • Destruction of your inventory or building in a fire
  • A lawsuit brought by a customer hurt at your location

2. Improves Credibility

Liability insurance protects the company you’ve worked hard to build. But the right policy also demonstrates to customers and contractors that you take risk management seriously. It proves you’re protected in a range of events and that your brand is here for the long run. This helps other business owners feel more confident in partnering with you.

3. May Be Necessary for Certain Contracts

Businesses sign contracts all the time, many of which require both/all parties to carry commercial liability. Without this protection, you may be excluded from beneficial deals like:

  • Borrowing money to buy new equipment
  • Renting an affordable building in a great location
  • Client agreements

4. Offers Protection in a Variety of Situations

Many business owners deny commercial liability coverage because clients don’t visit them on-premises. But as a business owner, you can face liability in a number of different situations. Let’s say you forget to bring in some equipment for the night and leave it in the path of your neighbors. If they trip over this equipment or otherwise injure themselves, you could face a liability lawsuit.

In another scenario, you might have third parties – like salespeople or contractors – who visit your business. If they suffer an injury, such as slipping on an icy sidewalk, or sustain property damage while there, insurance can offer much-needed protection.

Liability When Visiting Others

The same is true for you. While running business errands, attending trade conferences, or meeting with customers, you can encounter a negative situation at any time. You might spill coffee on a customer’s expensive laptop or bump into a machine and cause a malfunction. The point is a commercial liability policy can protect you from life’s most unpredictable events.

Choosing the right insurance shouldn’t be scary or intimidating. We can help you craft a personalized policy sure to safeguard you and your business. And thanks to our broad network of carriers, our family-run agency can offer better prices and more choices. Receive a free quote by calling ISU-Armac today.

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