Running a small business comes with many responsibilities. One of the most important is protecting your small business liability from risks. Whether you own a retail store, a contracting business, or other professional service firm, liability claims can arise unexpectedly and threaten your financial stability.
Stein Insurance can help you understand the particular risks your small business faces and build a comprehensive commercial insurance policy to safeguard your business from costly legal issues. Here’s a closer look at the most common small business liability risks and how you can protect your business.
Common Small Business Liability Risks
Every small business faces liability risks. Here are the most common types of business liability risks that Stein Insurance can help protect your business from. Coverage for each of these risks protects your business assets from lawsuits, fines, and settlements that could otherwise put you out of business.
General Liability
General liability covers a broad range of risks. It is important for all businesses to have general liability insurance. It covers slip-and-fall accidents at your place of business and accidental property damage to a client’s belongings that were in your care. It also covers claims of false advertising or copyright infringement.
Professional Liability
If you are a CPA, marketing professional, architect, financial advisor, engineer, or provide any other professional service, you will want to have professional liability coverage in your commercial policy. Professional liability protects you from mistakes or negligence in providing professional services. Examples include missed deadlines or contractual breaches leading to financial losses for clients.
Product Liability
If you develop and sell products, product liability is essential. It protects you from claims of defective products that cause injury or property damage. It also protects against manufacturing or design flaws that lead to lawsuits.
Cyber Liability
Cyber liability is one of the most overlooked risks a business faces. Stein Insurance always recommends that cyber liability is a part of every business’s insurance coverage. It protects you against litigation as a result of a data breach that exposes customers information. It also protects you against hacking incidents leading to financial fraud. If you store customer information on a computer or online, you need cyber liability.
Employment Practice Liability
If you employ workers, employment practice liability protects your business against claims of wrongful termination, discrimination, or harassment. It can also cover wage and hour disputes from employees.
Minimize Your Business’s Liability Exposure
Wondering how you can minimize your exposure to these top business liability risks? Here’s a quick list of steps you can take in addition to being properly covered by a comprehensive business insurance policy.
Maintain a Safe Work Environment
Regularly inspect your property for wet floors, loose wires, and other hazards that may injure employees or visitors. Provide your employees with proper safety training, and post clear signage warning of potential risks.
Secure Proper Legal Agreements
Use contracts and agreements to define responsibilities between your business and its vendors and clients. Work with an attorney to review service agreements, vendor contracts, and employee policies. An investment in these legal protections can save you much more down the line.
Protect Your Data
Invest in technologies to protect customer and employee data, including firewalls, encryption, and 24/7 monitoring from a managed IT company. Train your employees on safe email and data security practices. Never skip software security updates.
Carry the Right Insurance Coverage
Your business’s insurance policy protects your business assets in the event that your business faces a liability claim. In addition to general liability, professional liability, and cyber liability insurance, you may need property insurance, worker’s compensation insurance (required by state law for companies with employees), and other coverage. A business owner’s policy (BOP) bundles general liability, property insurance, and business interruption insurance into one convenient package for small businesses.
Why It Pays to Work with Stein Insurance
Stein Insurance is your local, independent insurance agency for business insurance policies in Minnesota and Wisconsin. Why should you work with an independent agent? We have access to multiple carriers, giving you greater choice and allowing us to customize your policy. We’re local insurance experts who want to help you understand the risks your business faces so you can adequately protect it. We also provide personal support in the event of a claim.
Working with Stein Insurance starts with a call or email. We look forward to reviewing your needs and helping you build a comprehensive business insurance policy.
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