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Importance of liability insurance for small businesses

The importance of liability insurance for small businesses in Florida lies, primarily, in protecting them from costly lawsuits. A lawsuit could affect both, financial and reputation.

For this reason, it’s necessary to know all risks associated with the activities you carry out in your business and have a policy that adequately covers them.

Get, right now, small business liability insurance for your business in Florida

What is business liability insurance?

Business liability insurance, also known as commercial liability insurance, is the one that protects companies from claims for damages suffered by a third party, during the execution of their normal or routine business operations. That is, it covers liability risks associated with your products and services.

The importance of liability insurance is enormous as commercial liability claims can be very expensive, but with the right coverage, you will have greater protection.

For example, let’s say you’re a contractor and while you’re repairing a client’s roof, a piece of wood falls on someone’s foot, injuring them. Unfortunately, your company may be responsible. Even if it is not liable, your company could be sued as a result of a liability claim.

Importance of liability insurance for small business in Florida

It’s very probable that your small business in Florida does need to be protected by business liability insurance. Whether you are a painter, carpenter, designer or you have a domestic cleaning company, it is best to have insurance that covers the risks associated with activities that are susceptible to threats of liability lawsuits.

If your activities are related, for example, with:

  • Visit the client’s workplace or room.
  • If customers visit your work site.
  • Access to customer equipment for repair and/or maintenance.
  • If you rent a space or use the property of a third party.
  • Activities that could be left unfinished.
  • You offer professional services.
  • If you use vehicles to transport yourself, and your employees, or to move materials.

Recommended insurance policies for small businesses in Florida

General Liability Insurance

For any business in Florida, large or small, it is important to have a general liability policy that covers legal defenses. It means, to have a policy that protects the company from economic losses. Generally, it covers claims for customer injuries in your business, damage to a customer’s property caused by your products, business activities, or employees, and claims for advertising damages, among others.


Professional Liability Insurance

If you are a self-employed professional or owner of a company that provides specialized professional services, a professional liability policy is very necessary. With this policy, you’ll be protected against claims related to work performance such as errors, carelessness, negligence claims, and delayed or incomplete work.

Summarizing, this policy, also known as “Errors and Omissions (E&O) Insurance”, helps cover legal costs.


Workers’ compensation insurance

Basically, workers’ compensation insurance is a benefit that is granted to the worker who has had an accident at work. This type of insurance covers part of medical expenses, lost wages, and legal fees.

According to Florida law, if your company has employees, you must purchase this type of insurance, although the requirement will depend on the type of company, its number of employees and even work schedules. For example, in the construction industry, this type of insurance is required if the company has one or more employees, including its owner.

However, if you are a self-employed professional, it also protects you in case you suffer a work-related injury that is not covered by your health insurance.


Commercial auto insurance

A commercial auto policy is required in Florida for all company-owned vehicles, including owned or rented vehicles. This type of commercial policy generally covers property damage caused by the owner or an employee while driving the company vehicle. It can also cover vehicle theft, vandalism, and damage caused by weather disturbances.

It’s very important that you speak with your insurer in case he uses your personal vehicle to carry out your work. This is because in many cases, the personal auto policy does not cover business use.

Final words

We can all incur liability at some point. Accidents can happen without warning and affect anyone, no matter how responsible and careful they are.

Definitely, regardless of the size of your company, the importance of liability insurance in Florida lies in the benefit of feeling calm knowing that your investment is protected.

Do you need more information about the need and importance of small business liability insurance in Florida?

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