General liability insurance coverage can protect your small business from numerous types of claims, including property damage, personal injury, bodily injury, and other mishaps that might arise from your business operations. If you have inventory or expensive equipment, you can use small business insurance to cover losses rather than draining your bank account if your warehouse gets robbed or you incur storm damage that fries your computers or floods your warehouse. This coverage can keep you from having to shut down your operations by covering your loss, letting you replace inventory or fix damaged equipment without dipping into your cash reserves.
Liability insurance can also protect you against cash drains stemming from customers who have accidents in your retail space or on your business property, even in the case of negligence by you or your workers. It also proves a must-have investment when you run a delivery service since you have workers driving and visiting customers at their homes and businesses. If you run a service-based business that does electrical or plumbing work, these polices can insulate you against claims should wiring problems caused by your field technician cause a fire burn down or should ill-fitted pipes cause flooding. Most cities and provinces require service-based businesses to have liability insurance to do business there, making it a good idea to search for a policy that works well for your budget and business.
If you run a business that doesn’t deal directly with the public and sells items unlikely to hurt consumers, you may not need liability insurance; in this case, a small amount of coverage may work for you. If you’re unsure of the type of coverage you need or if you need liability insurance at all, consult with a professional who understands the ins-and-outs of your industry.