How To Protect Your Business Venture: All businesses, regardless of their size or stature, require various types of protection. Unfortunately, insurance is just one of those unavoidable costs that are more than worth the money. This post focuses on how you can keep your business and employees out of harm’s way.
Get Insurance for Your Business
There are multiple types of insurance policies concerning businesses. These are designed to provide protection in various circumstances and save you from going bust or irreparable financial damage. Below we have highlighted one of the most popular types of insurance currently available for any business person to take out.
An Overview of General Liability Insurance
This insurance covers certain types of events and incidents that your business may be liable for. This includes personal injury and damage to buildings, as well as reputational damage and advertising discrepancies. Get a few quotes to find general liability insurance that fits your needs.
General Liability Insurance Key Points and Main Benefits
There are some key takeaways to know about general liability insurance. These are as follows:
- You are protected against third-party claims regarding personal injury. This can be if a client is injured in your building or due to your work. You won’t have to pay out of your direct business funds, as your insurance will cover the amount owed. This pertains to legal fees associated with any lawsuit, court fees, and other related costs. Overall it can protect you from bankruptcy and any hits to your reputation, as the issue will be resolved quickly and in a neutral manner.
- Your insurance will also pay for any damages caused to buildings or property due to your on-site activities. This can be aesthetic damage and sometimes structural too, and it is decided on a case-by-case basis. For example, if you regularly work in clients’ houses, there is a higher risk that you may cause damage to their homes. Were this to happen, you would be entirely liable for the cost of said damages. Therefore, insurance enables you to claim through your policy as an alternate option to avoid a high surprise cost. As a result, everything is taken care of, your business doesn’t suffer a significant financial hit, and your client issue is resolved quickly and peacefully without any necessary further action.
- If you or someone in your direct employ is found culpable for defamation claims, this can be costly in a legal sense. It can take up time and finite resources and cause irreparable damage to your business. GBL protects against this by covering legal fees and resources to address the case. Your reputation can take a big hit with cases like this, so it is good practice to deal with them quickly in the smoothest way possible to ensure no further damage is caused.
- Certain things are not covered. These include all things related to your employees – so if an employee gets injured on the job, this isn’t covered under this particular branch of insurance and instead requires an entirely different policy: workers comp insurance. It also includes any damages incurred on your property by your employees. If it doesn’t happen in a client’s house, general liability insurance may not foot the bill on your behalf.
Make Everything Legal and Above Board
This section is about things like getting your taxes correct and up to date, having proper wages set up for all of your employees, and engaging in proper practices for support and HR policies. If you get these things wrong, there is so much scope for failure.
- Hiring an accountant is a good way forward. It provides you with a professional protective service from anything you might miss if you were to handle the financials yourself. For example, taxes are essential to your business practice and must be done right, so you don’t become liable in court.
- Setting up an HR department provides an expert line of support for anyone under your employ that may need legal advice or has an issue on the job. It also gives you an extra blanket of protection from said issues should they take it further and hold you accountable.
- Last but not least, ensure you are paying the correct wages per your state’s law. Basic wage rates vary, but you have to pay that as a minimum.
Protecting a business should be at the forefront of every business owner’s mindset. You have to put proper measures in place to ensure that you don’t go into financial ruin, damage your reputation, or become liable for legal challenges through malpractice and misinformation. Enlist the advice of a professional if you don’t know where to start, but get these things nailed down before you are in too deep to recover.