For small businesses, commercial insurance is not an option. The last thing that you should want to do is forget liability insurance when it can cost you so much. Here is what you need to know about business insurance and why you need it.
The Devastating Impact of Lawsuits
Lawsuits are catastrophic to small businesses. Did you know that small businesses lose about 100 billion dollars a year due to lawsuits and legal costs? Sometimes small businesses believe that they won’t be targeted for lawsuits because they aren’t major companies. There’s a misconception that larger companies suffer more lawsuits than small businesses because of the amount of money involved.
This isn’t entirely true. In fact, a smaller business is more likely to suffer a frivolous lawsuit. Massive corporations have legal teams to help stop frivolous lawsuits before they begin. Smaller businesses, on the other hand, do not always have the funds to pay for suits. Without business insurance, you could suffer a catastrophic loss that leads to bankruptcy. This is why there is commercial insurance Lodi CA business owners can invest in.
The Protections of Business Insurance
If you have the right coverage options, you can breathe easier knowing that your business has protections in place. You can minimize the financial obligation of your business during an unfortunate lawsuit. Some of the coverages offered through commercial insurance are the following:
- General liability insurance
- Cyber liability insurance
- BOP coverage
- Professional liability coverage
When you need more information on the policies, you can speak to a specialist in business insurance. Depending on the size of your company and the industry you work in will determine the types of coverages that you need. These four coverages, however, tend to be necessary across the board.
Some business owners believe that commercial insurance is for larger companies. The truth is that small businesses carry more risks and will suffer more devastating consequences without the right insurance coverage.