There are a number of risks involved with starting a business, and it can be easy for business owners to overlook some of the risks that come with legal liabilities. Investing in the appropriate insurance policies can greatly reduce these risks, but it can be hard for you to make sound choices if you are under the impression that a couple of misconceptions regarding business insurance are true.
Myth: Professional Liability Offers The Same Protections As General Liability Insurance
Regardless of a professional's sense of dedication and professional integrity, accidents can happen, which is why many consultants and other professionals understand the importance of having professional liability coverage. This coverage will protect you in the event that your services or advice caused your client to suffer damages, but this is the only protection offered by these policies.
As a result, it should be noted that these policies will not protect you in the event that a customer or client suffers damages as a result of visiting your office. As an example, if a customer was visiting your office and suffered an injury due to a chair collapses when they sit in it, your enterprise might be liable for compensating the client for their injuries.
Myth: Liability Insurance Is Too Expensive
Unfortunately, individuals that have only recently started their enterprise may have limited finances, and as a result, they may attempt to skip this type of coverage to save money. However, you may be able to minimize the difficulty of paying for these policies by opting to pay for the plan on a monthly basis. This will allow you to break the cost of the general liability policy into a smaller and more manageable task.
While it is true that these policies can carry a relatively high cost, it should be noted these policies can usually be deducted from your enterprise's tax burden. While you will need to keep the receipts proving you paid for the policy, this can be a minor inconvenience for saving on the costs of your policy.
Understanding how to properly insure your enterprise is critical for reducing the liabilities of your company. Considering that a major lawsuit could bankrupt your new company, this is a critical part of protecting your company's future. To ensure you are able to adequately mitigate these risks, you should understand the difference between professional and general liability insurance as well as the steps for helping to manage this expense to help you get the most from this investment in your company. Contact a company like Atlantic Insurance & Benefits for more information.Share