Share:

Although every business has unique insurance needs, the majority of companies and sole proprietors can benefit from protection against liability claims. Unfortunately, there are many entrepreneurs who fail to purchase adequate liability insurance because they have the wrong idea about how it works. If you own a business, it’s important to learn the facts regarding this type of coverage, so you can avoid leaving yourself vulnerable to significant financial risk. Here is the truth behind some of the most common misconceptions concerning liability policies.

3 Liability Insurance Myths Debunked 

1. General Liability Insurance Covers All Risks 

There are several different kinds of liability risks a business may face. As such, you will have the option of purchasing different types of liability insurance. While general liability is essential for covering bodily injuries that occur on your property, it won’t protect you from losses incurred due to professional mistakes, commercial auto accidents, or employee-related claims. You will need to add coverage for each of these risks. 

2. Liability Coverage Isn’t Necessary for Home-Based Businesses 

liability insuranceMany entrepreneurs who work in a home-based business mistakenly believe their operations are covered under their homeowners insurance. In reality, most standard policies have strict restrictions excluding protection for business-related activities. Without separate commercial liability coverage, you would be financially responsible for paying any liability claims that arise in connection with your work. 

3. Small Businesses Don’t Have a Need for Liability Insurance 

All too often, small business owners fail to recognize they are in jeopardy of being sued just the same as any large corporation. Running a company in a litigious society means people won’t typically hesitate to bring a lawsuit against you if they feel they have suffered damages caused by your business. The truth is, small businesses have a higher risk of being forced to shut down after a lawsuit if there is no liability coverage to help pay for it.

 

Being properly informed about liability insurance will help ensure your operations are sufficiently protected against lawsuits, losses, and unnecessary costs. When you shop for coverage with the professionals at Barron Mutual Insurance Company, you can count on them to carefully assess your business’s specific liability risks and assist you in customizing a suitable policy. Having served residents throughout the Bayfield, Burnett, Washburn, Sawyer, Polk, Barron, Rusk, and Dunn counties of Wisconsin since 1891, the agency has a vested interest in providing local companies with the insurance products they need to succeed. Call (715) 537-5141 to inquire about a quote, or visit their website for more information on their agents and longstanding industry experience.

tracking