As a business owner, you must contend with a dynamic range of challenges to succeed in your endeavor. You must not only build your brand from the ground up, but you also have to be prepared for unexpected threats to your business, lawsuits.
Of the various threats you may encounter, lawsuits are one of the most serious. Even a single lawsuit can cost you tens of thousands of dollars in legal fees. Should the court rule against your business in the proceedings, you may be required to pay out tens of thousands more in damages.
Fortunately, obtaining commercial insurance, such as a general liability policy, can insulate your business from the risk of lawsuits. Purchasing a commercial insurance policy is a simple way of protecting your life’s work and guarding against the financial implications of a lawsuit.
What Are My Chances of being involved in a lawsuit?
According to Rocket Lawyer, approximately 100 million civil suit cases are filed annually in the United States. Of these, about one in five are filed against businesses. Considering there are approximately 31 million small businesses in the United States, your chances of being the subject of a lawsuit are higher than you may expect.
Many of the lawsuits filed against businesses concern contractual disputes. However, some of the other reasons that people may file lawsuits against a business include the following:
- Slip and fall injuries
- Defamation or untruthful advertising practices
- Product-related injuries
In addition to personal injury and contractual lawsuits, you must also be mindful of Equal Employment Opportunity Commission (EEOC) complaints.
If an employee, former employee, or applicant files a complaint of unfair hiring practices, your business will be the subject of an inquiry by the EEOC. As a result, your legal fees can be significant even if the complaint is completely unfounded.
Is General Liability Commercial Insurance the Only Coverage I Need?
General liability commercial insurance provides coverage for property damage and bodily injury claims. This type of policy covers claims of injury or property damage that may result from business operations or your product itself.
In the event of a lawsuit, general liability coverage will pay for your legal fees. If the plaintiff wins their case in court or you settle before trial, the policy will pay any judgments against your business up to the coverage threshold.
Every business, regardless of industry, needs general liability insurance. However, depending on the field you operate within, you may also need additional coverage. For a list of other common commercial insurance coverages for small businesses, check out this guide from the Small Business Administration.
Finding the Right Coverage for Your Business
Finding the ideal coverage limits for your business can be challenging, or at least it used to be. Obtaining a policy that meets your needs is simple now, thanks to Simpay. Simpay provides total business solutions, including human capital management services, payrolling technology, and commercial insurance coverage. You can reach out to the team to receive a custom quote on an insurance policy for your business.
Although you can’t predict when accidents will occur in the future, protecting your business with the right insurance policy will safeguard all you’ve invested in your business. Not only will the coverage bring value to your organization, but you can relax knowing your business will be capable of surviving a liability claim.
