Accidents happen quite often in life, and although most of the time, they are far from our fault, the outcome can affect us in ways that cause financial or even worse, physical harm.
Since we live in a modern age where human rights are the number one priority in almost every country, we have to be very careful with the things we do in life.
Who would’ve guessed that running a business and selling products to other people can put you behind bars if, by mistake, one of your customers ended up mentally or physically damaged by what you put your name behind?
Let’s say that you’re running a business that earns through the manufacturing of toys. You clearly state on all of your products that they’re not meant, clearly, for use that’s not under the surveillance of an older person. Yet, a child still manages to get hurt by either poking themselves with a sharp side or in a worst-case scenario, swallowing one of the smaller parts. It might sound like we’re going a bit “too much” with negativity, but things like these happen on the regular, and uninsured companies are often closed because of it.
In today’s article, we’ll talk about General Liability Insurance and how it can help you prevent some of the events that we just mentioned above. If you’re looking to learn some more on this topic, you’re more than welcome to keep on reading until the end of this article. Let’s take a look.
What is General Liability Insurance?
By definition, General Liability Insurance is the type of insurance that will help you prevent suffering from financial damage and lawsuits in case one of your customers somehow gets damaged by your products, services, or operations. It is considered mandatory for every business that’s a bit larger and operates for a long time in the corporate world.
You’re probably wondering what you as a business-owner have to do with the fact that some of your employees were not careful, or your customers didn’t follow the instructions mindfully enough. It’s quite a common question to ask, but unfortunately, the answer will surprise you.
You, as the owner of the business, can face a lawsuit if any of these unfortunate events happen throughout your career, which is why we feel like General Liability Insurance is something that you must have to be secure from the legal aspect.
How much does it cost?
Unfortunately, we cannot tell you exactly how much a monthly rate for General Liability Insurance would be in your case, simply because this varies depending on your living location and the price of the company that you’re willing to sign a contract along. Numerous other factors can impact the price as well, but we can give you a rough estimate so you can get a blurry picture of how large of a cost this can be. We do understand the importance of managing your finances properly, as it is a crucial thing to do if you want your business to improve and progress.
- The average cost for Workers’ Compensation Insurance is about eighty to eighty-five dollars per month.
- The average price for Business Owners’ Policy, also known as BOP, is about seventy to eight-five dollars per month.
- The average price of General Liability Insurance is somewhere between fifty and seventy dollars per month at most.
Once again, these prices will vary depending on numerous factors, but if you are determined to learn some more in-detail about General Liability Insurance, you can check howtostartanllc.com. Common sense leads us to believe larger businesses get charged a bit more. But, that’s also accompanied by the thought that they’ll turn to highly-reputable companies, which automatically makes the price a bit higher on the scale. You should do a phone call and ask for a specific answer regarding your case.
Against what kind of accidents do I need this?
We mentioned a couple of physical injuries in our introduction part of this article, but we feel like we need to remind you that a customer can sue you even if the damage is not that “physical.” Usually, an unsatisfied customer can file a lawsuit claiming that some of your actions caused them psychological damage, trauma, or just a form of disturbance. Of course, these scenarios are a bit rarer, but they do happen, and you in the role of a business owner should prepare for them. Professional mistakes also fall into this category.
At what point of my career should I insure?
If you are the owner of a “businesses prone to accidents,” we suggest that you get a General Liability Insurance contract as early as possible. Accidents usually catch us off-guard, but once they do happen, you can get in a lot of trouble unless you have protection against the law itself.
In places such as the United States of America, consumers have a lot of rights, and it’s not rare to see them winning in court against a business perceived as a “Titan” in the industry. One of the most notable examples is the RedBull case in which a consumer managed to win millions from the world-famous brand by claiming that their energy drink “didn’t give him wings,” as stated in their slogan.
Why you shouldn’t save up on this investment
It’s like every CEO to do everything in their power to cut costs and maximize profit. After all, that’s the sole purpose of businesses. However, some expenses just cannot be ignored, and it’s for the greater good of the company to sort them out as early as possible. We feel like signing a General Liability Insurance Contract with a reputable company is something that cannot be insignificant, and it’s one of the first things that you should pay for upon taking care of the essentials, assuming that this is not essential by itself.
Insurance in 2023 happens to be a cost that many people consider unimportant until an accident takes place, and they quickly learn how crucial it is. In today’s article, we gave our best to assure you that a General Liability Insurance Contract can be a real life-saver in case you ever get in trouble with the law. The customer is always right, but mistakes happen every single day, and only one of them shouldn’t be a deciding factor on whether your business gets closed or not.