Why General Liability Insurance Should Matter to Small Business Owners

One aspect every business owner must realize is the fact that he or she is legally responsible for products sold and services rendered. It is the obligation of the entrepreneur to insure against loss or damage and to achieve this; he needs to invest in a liability insurance policy. Business owners in Maryland can work with a trusted insurance agent to understand the amount of liability insurance necessary and what protection it provides.

Liability insurance at its basic is coverage that protects the business owner in the event a legal action or claim is filed against him or the business. The investment made in a liability policy for the business helps ensure its future and viability if a claim is made.

In today’s litigious society, a business owner may find himself the object of a lawsuit that has the potential to bankrupt the business. Consider the restaurant owner that can be sued if a patron becomes ill because of something he ate, or the product manufacturer that finds himself the object of a lawsuit over a faulty item, or even a professional speaker that is sued by an attendee that feels the subject matter did not live up to the fee charged. Liability insurance policies provide protection for these situations and myriad others. Liability insurance covers legal fees and will defend the policy owner; regardless of whether the claim is frivolous or legitimate.

Business owners that run a business from a physical location can find themselves sued by a customer that visits the business but suffers a trip and fall accident; regardless of fault on the part of the business owner. The liability insurance policy will protect the insured and will pay a settlement to an injured party.

A business that manufacturers products can be sued for misrepresentation if a customer does not believe that the product provides the benefit the company purported.

A general liability insurance policy rarely pays the business owner, rather any money paid out goes to the injured party. The policy is not one that provides any profit to the owner of the policy. The owner of the policy benefits because the insurance policy protects him and his business assets.

To learn more about how we can help you protect your business, please contact us or call us at (301) 681-7550