Lawsuits are draining, complex, and costly events to endure. In the world of small business, every penny counts, and time-consuming, expensive lawsuits drain you of many things including profits, human capital, and more. As a business owner, the added stress redirects your focus from making your business the best into damage control; however, things happen, and when your company is held liable, you can expect having to do what is necessary to restore the loss suffered by another party.
Yes, liability concerns are serious, but small businesses have plenty of options to remain protected from such incidents. The rising cost of labor, building materials, medical care, and legal counsel are concerning no matter which industry you are in. Having the right insurance policies provides your company with a safety net that can help limit losses and restore them after facing certain liability-related perils. Learn more about how you can protect your business, endure a liability claim, and overcome the aftermath of such losses all without breaking the bank.
Common Liability Hazards for Small Businesses
Liability concerns can come in many shapes and forms, but the common denominator between these hazards is that they all stem from a loss caused by your business to another party. This may be something as simple as a customer slipping and falling while visiting your store or a complex cyberattack leading to a data breach. Take a closer look at some of the most common liability hazards facing businesses throughout Texas:
- Injury while visiting your business’s property due to negligence and/or unsafe operational conditions.
- Negligent actions which damage another party’s property caused by an employee of your company.
- Product defects leading to injury, damage, or miscellaneous setbacks to your customer.
- Copyright discrepancies due to improper use of another party’s property for your company’s marketing materials.
- Advertising and reputational harm caused by misrepresenting or slandering another company.
- Losing sensitive information involving your customers, partners, or employees due to theft.
These are but a few examples that show just how easy it is for your small business to become wrapped up in a variety of liability lawsuits. Protecting your company against these scenarios and more are why it is important to maintain the proper lines of business insurance.
Another common area of liability for your business involves automobile accidents. When your employees are at fault during a wreck, things can add up quickly. There is property to restore, possibly medical bills to cover, and even more depending on the severity of the accident. Commercial auto insurance is required in the state of Texas as well as most states. You’ll need to ensure that your employees are carrying a minimum amount of liability coverage which can be split into two coverages: bodily injury and physical damage. Both coverages work together to keep your company from paying out of pocket to restore the loss to another party and failure to carry such protection can result in paying for these expenses out of pocket as well as possible fines and legal woes.
General Liability Insurance for Texas Small Businesses
One of the main ways your small business can protect itself is by enrolling in general liability insurance. This coverage is important for any company and protects against bodily injury, property damage, legal/administrative expenses, disputes stemming from advertisement and reputation issues, and copyright infringements. Though Texas does not require general liability coverage for businesses, the financial protection such policies provide makes enrollment a no-brainer. Although premiums may vary, they pale in comparison to the expensive endeavor of paying massive fees and costs to restore a loss for a customer, partner, or any other third party.
Commercial Umbrella Insurance in the State of Texas
Insurance policies come with limits. These limits serve multiple purposes including making your insurance policy more affordable and setting the perimeters of what your insurance provider is responsible for covering. This can mean that in the aftermath of a loss, even if your small business is covered, you may find that your company is still responsible for paying to restore such losses out of pocket. This is where a commercial umbrella policy comes in handy.
You’ll need to purchase other business insurance policies such as commercial property or general liability insurance in order to be eligible for commercial umbrella insurance coverage, but your policy is an extra layer of protection that kicks in once other policies hit their limits. For example, if your employee were to cause an accident that involves multiple vehicles and leads to expenses that reach beyond your commercial auto policy, your company will still be on the hook for paying to restore the loss, only without a financial safety net to do so. With an umbrella insurance policy for your small business, you can protect your company’s assets and restore the other party’s loss. Commercial umbrella insurance policies mitigate your company’s exposure to lawsuits and save you money while restoring a liability-related loss.
Insurance Is an Investment Against Rising Costs
For small businesses, cutting costs is important and unnecessary costs are right to be eliminated. Business insurance can be a fickle thing. On one hand, having commercial policies is important even though you hope to never need them. On the other, you’re paying for something that may never benefit your company. Insurance isn’t just another expense, however, it’s an investment that protects you from paying to restore losses all while costs continue to rise. Consider the increase in costs we consider to see across the board. Materials and labor continue to rise. Legal and medical fees are skyrocketing. Inflation and the cost of living only amplify these costs and add to the problem all businesses are facing. By investing in the right commercial policies, you can avoid overpaying for coverage all while protecting your small business against expensive scenarios that are only going up.
Reputational Harm in an Ever Connected World
In addition to paying to restore physical loss and medical expenses, liability coverage can help protect your business from advertising and reputational harm caused to another business. The Internet is a powerful tool, for better or for worse, and no matter which version we continue to plug into, consumers and businesses are becoming more and more connected by the minute. Should your business become liable for disparaging another company through your marketing efforts, your company could be exposed to severe expenses surrounding a lawsuit. General liability coverage protects your small business from the large costs it may take to right these wrongs.
Workers’ Compensation Protects Your Company and Employees
Many liability coverages restore the loss to people outside of your business, but what happens when something happens to one of your workers? Employees injuring themselves on the job can lead to a variety of issues and while the state of Texas doesn’t require you to possess a workers’ comp policy, failing to do so can put you in a tough financial spot after an injury. You see, whether you have a policy or not, your business is still responsible for paying for a variety of expenses related to the injury including medical bills, legal expenses, rehabilitation, lost wages, and more. Having a workers’ compensation policy helps you keep employees protected, save on costly injury-related incidents, retain and attract workers, and more.
Protect Your Small Business From Liability for Less
Staying protected against liability hazards is the right thing to do for any small business, but there’s no point in doing so if the costs outweigh the benefits. Thankfully, Freedom Insurance Group has been helping companies like yours save money while staying protected since 2005. Our agents are ready to serve your company’s needs by providing a personalized approach to your insurance needs with affordable commercial insurance options.
Finding the right insurance policy that meets your needs can be challenging enough, but finding a policy for the best price is another obstacle all on its own. This is an issue for business owners for a number of reasons including:
- The needs of each business are different.
- No two businesses or industries are the same meaning that each company will present its own unique set of risks. If your business possesses more risk as a client, you can expect higher premium rates from your insurance provider, whereas, companies with lower risk factors can expect cheaper rates.
- All insurance brands assess risk, but no two do it alike. Each company will use its own methods of calculating your risk and, therefore, will also use its own methods for determining how much you’ll pay for your business insurance premiums.
- Combing through insurance provider after insurance provider can be a time-consuming endeavor.
Our team helps small businesses tune out the noise, and find the right policies that meet the needs of their individual company all at the lowest price on the market. We have partnerships with over 25 top-rated insurance brands that are capable of protecting your company confidently. By comparing your coverage needs among our insurance carriers, we can identify the lowest cost for your coverage without cutting corners and leaving your company vulnerable. Get a free general liability insurance quote with only a few clicks, or contact one of our agents to get protected and save money today.