Facing a lawsuit at your business is a scary thing. Lawsuits are becoming ever more popular and can be devastating to a business owner. Large businesses generally have legal departments to handle these situations, and most large businesses may even have a budget just for legal matters. However, for small business owners, this is generally not the case. No one opens a small business expecting to be sued or faced with the threat of legal action. Unfortunately, in today's world, roughly 43% of small businesses will be threatened with a lawsuit or legal action of some kind.
Since legal costs can be rampant and the financial hardship immense, it's vital for any business, even small business, to make sure they are properly prepared and protected. It only makes good sense to have the right business insurance in place.
What Kind of Insurance Is Needed to Prepare for a Lawsuit?
Most business owners know that a businesses insurance coverage needs to be in place before a lawsuit or threat of suit ever happens. There are many insurance products out there and this list is limited only to the most common types of business insurance to protect your small business from the terrible financial consequences of a lawsuit.
A General Liability policy is a first line in defending a small business. Liability is designed to protect a small business from common exposures and to minimize the financial risk associated with a lawsuit. As an example, if a patron of a store slips and falls or, perhaps, a customer accuses your company of false advertising, then general liability is a small businesses' protection against these type of claims. It may also provide help with legal fees, court costs, or settlement costs resulting from a lawsuit.
Depending on your small business, your company may need a more specialized insurance protection plan. Your independent insurance agent will help you to understand the different products and discern the risks that may be associated with your small business or your industry. Your independent insurance agent can help determine what is necessary to cover these risks. A local, independent, hands on insurance agent is valuable to any small business in today's world. These professional men and women live and work in your state and even in your community. They understand a wide range of issues small business faces every day. Make sure your small business is adequately insured. Talk to your agent about your business concerns to make sure you have the coverage your business needs even and, especially if, your business is ever faced with a lawsuit.