Disability and Liability: How to Protect Your Business

Your business is like one of your children. You built it from the bottom up, you nurture it and pray that it flourishes. By all accounts, it is doing well, until an accident in front of your building has nearly crippled you. Your insurance needs are important, to protect yourself and your blossoming business from financial devastation.

Make sure that your disability and liability needs are assessed by your financial planner and act accordingly.

Liability insurance is figured on your businesses size or by payroll, as well as by the specific risks involved. Personal injury will have limitations on it similar to auto insurance. Liability insurance can also ease part of the cost of investigation, litigation and resolution of disputes, something to consider if your business is one that gets hit by frequent lawsuits.

How much liability insurance do you actually need then?

Again, depending on the size of your company or by your payroll, it could be as low as a few hundred thousand dollars to a few million. You must do all that you can to protect your business and your employees. As with any insurance policy, there are omissions and exclusions and you must be well aware of what is and is not covered. Consider an additional policy called an errors and omission policy to cover legal actions or injuries because of a mistake with work. Bigger companies will also need to consider other types of liability insurance specifically designed to protect the upper level executives against action against the company itself.

Of course, in addition to liability insurance, you will still need to insure the building itself, and if you have them, any company vehicles.

Although they cannot all be written as one policy, it is a good idea to get all insurance products from the same place to avoid confusion and needless duplication.

But what about disability? In the shaky, early days of your business, any sickness or illness to you can spell the end. What if you are in a car wreck and remain in the hospital for a week or more? Will your business last through that? Disability insurance will cover some of your operating costs if you are injured or ill, possibly keeping your business head above water until you are well enough to get back to work.

Disability insurance also covers your employees if they become injured on or off the job, paying their salary at differing percentages until they can return to work. Some companies automatically offer a policy which can increase the amount of pay, while others do not, but either way, it is a very necessary expense.

Consider this: would you rather pay for a disability insurance policy to protect your business now, or watch a lawsuit from an angry, injured former employee destroy your hard work?

You want your company to succeed, everyone knows that. That is why you have hired only the best employees, painstakingly chose the best location, ran the best advertising campaign. Don’t blow it now by not having enough liability and disability insurance to truly protect your company.

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