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Are You In Business For Yourself? Do You Realize That Your Business Faces Potential Damage Claims Every Single Day?

Did You Know That Liability Claims Against You Could Run Into Millions Of Dollars?

Are You Properly Insured Against Liability Claims?

As a business owner, you take your assets in your hands every time you open the doors for business. Today people are so willing to sue over the slightest injury that you can't afford to be unprepared. How easy is it to make a mistake that costs your client money or for someone to trip over in your doorway?

If you are a partnership or sole trader it is not only your business assets that are at risk but your personal assets as well. A claim for injury or damages could cost you everything you own. Can you imagine what it would be like to have to sell your house so you can pay out the damages? Where would you live? How would you support yourself and your family? Have you thought about all the pain and suffering you will cause yourself and your family if you are not properly insured?

If you are in business for yourself you need to become familiar with business insurance. If you aren't protected then you might as well just throw everything away right now.

Just imagine.....

You have just opened your business up for the day. The sun is shining and birds are singing. There are lots of people out shopping and looking in your shop window. What a great day it will be for possible sales.

Oh no, what is that noise? A loud bang? Why is someone lying in the doorway of my shop? Oh oh... What happens now?

Yes, your worst nightmare is coming true. A customer has tripped over on the way into your shop. She has injured herself. You know what to expect now, don't you? A liability claim is coming your way. In fact, liability claims for slips are one of the most common claims against business.

What is a liability claim?

Liability claims are claims submitted against your business. It means that your business is being sued and it could (most likely WILL) cost you a fortune.

If someone is injured or property is damaged by you or your workers in the course of your business then you are liable for damages claims that may be lodged by them.

Liability claims could involve:

  • *physical injury
  • *mental or emotional damages
  • *property damage
  • *misleading information supplied by you or your staff

Even worse, the claim could also mean that you are liable to pay the legal fees of the person who is suing you. Now that hurts, does it not?

Just imagine how much the claim could total if your customer really hurt herself in that fall.

  • *medical costs
  • *loss of wages
  • *legal costs
  • *medication costs
  • *investigation costs
  • *transport costs

They could all add up to such a big total that you would have to sell your business, your home and all your assets just so you can pay part of the claim. You could be staring bankruptcy in the face.

You will be happy to know that there are some things you can do to protect yourself against liability claims.

Liability Waiver Forms

A liability waiver form is a form that your clients sign which limits the extent of your liability in a given situation. It is a legal document that should be prepared by your legal advisors.

You will not be able to cover every possibility in the form but you can limit the possibility of liability claims by covering the most likely risks on the form.

For example, if your business involves teaching people to cook the potential dangers in the situation could involve burns, slips or spills. Your liability waiver form should list these as exclusions. That means that your clients agree to accept your services and understand that they cannot sue you should a burn, slip or spill occur. They are acknowledging that there is a degree of risk involved in the service that you provide and electing to proceed anyway.

A liability waiver will not cover everything nor will you be able to have everyone sign one. The poor customer who fell over in your doorway won't have signed a liability waiver just so she could enter your store.

A liability waiver will not protect you against unforeseen incidents and willful damage. What you ARE doing is limiting your liability and protecting your business during its regular, income producing activities.

Protect your business with commercial general liability insurance

The term 'commercial general liability insurance' is a mouthful, isn't it? It is a term that you must become familiar with. Commercial general liability insurance is insurance that protects your business in the event of a claim. You might think that you can't afford insurance but really, you can't afford not to have it. One claim could destroy everything that you have built up. After all, you would not drive your car on the road without insurance, would you?

No matter how well drafted your liability waiver form is there is always the possibility that an accident will happen that you have not covered yourself against. Liability insurance will protect you against liability claims. Do not forget that it isn't just the costs related to the injury that you might have to cover. There could be legal expenses involved, too. If you are found liable for the injury you may have to cover the legal and investigation fees for the claimant as well as your own.

Commercial general liability insurance will cover you if the customer who fell in your doorway decides to sue you. If her injuries are severe her claim could be very high. If you are insured you will not have to worry about it

What your commercial general liability insurance policy should cover

So, do you know what your commercial general liability insurance policy should cover? A good commercial general liability insurance policy should offer plenty of coverage. It should cover injury claims, advertising claims and claims for property damage. If your business is one that could be considered high risk, such as a construction business, then you probably need a high value policy.

Your policy will tell you how much your insurer will pay for each type of claim. Be sure that your policy has a sufficiently high amount for each claim. There is no point in having an insurance policy if you still have to sell your home to cover the shortfall. If you have employees make sure that the policy covers their actions, too. Mistakes on their part will leave you liable for claims, too.

If you rent your premises you should consider choosing a policy that covers you in the event that you damage the building.

Talk to your insurer about your specific needs. There will be a policy to suit you.

No matter what sort of business you run you cannot afford to operate without commercial general liability insurance. Human error is something that we live with every day. In business it exposes you to all sorts of expensive consequences that could lead to the loss of the business itself. It could lead to the loss of everything of value that you own. In reality, it just is not worth operating without adequate insurance cover. Think about it, the cost of your commercial general liability insurance policy will be far less than the cost you would be liable for in the event of a claim. Why wouldn't you insure your business and your lifestyle to keep it secure? If you haven't already, you need to think about your commercial general liability insurance TODAY! Who knows what could happen. It is better to be safe, than sorry!