Many of the businesses particularly the small business may have ignored getting a Business Consulting Insurance for they consider their business to be too small to get the guidance of these consultants. They therefore took the option to evaluate their insurance requirement.
However, it is not only the big businesses that need the assistance of these consultants. Big or small a business has to comply with the requirement of the law in the aspect of insurances. Get more interesting details about business consultant insurance check out this site.
But the question is not what type of insurances that they need, it is in the level of coverage that they have to consider which is what is at play here and the affordability of these coverage.
What is the risk involved if a business has no insurance coverage?
Although there are different coverage-insurances that are required in every business, let us just consider one which is the business liability insurance.
Most businesses take all measures to protect themselves from the risks for physical damages of their assets like their buildings, stocks and goods. What they fail to realize is that the most common businesses face are all kinds of liabilities.
What are the liabilities businesses needs to be protected from?
A business has to be protected from liabilities such as:
- General liability – this covers property damage or it could be from physical injury affecting the general public. It could also be affecting employees or customers resulting from negligence in the operation through the course of having the business. The insurance will protect the business from medical expenses of body injuries that is caused to an individual. It also covers for third party’s properties.
- Professional liability – protects professionals from liabilities that have resulted from claims of malpractice or loss of data. The litigation cost for these particular cases is high so the insurance takes care of this.
- Product liability – when your product has caused an individual to get injured through being defective, this product liability takes care of that.
With liability coverage, the business reputation will not be tarnished and there is not effect of this to its finances as well as to the survival of the business.