Are you a small business owner or sole proprietor looking into business liability insurance in Smokey Point? American Insure-All® has options for you. We want to ensure that, if something happens to you or your business, you have the coverage you need to stay operational.
Now sure where to start with looking into liability insurance? Here are some helpful answers to a few common questions about professional liability insurance for small businesses and sole proprietorships.
What is professional liability insurance?
Liability insurance is designed to protect you if a client files a lawsuit claiming that you did not fulfill your obligations as a professional. This insurance can provide you with protection against legitimate lawsuits if you have such coverage. The insurance company can offer a payout if the customer wins a lawsuit up to the limit of your purchased policy.
Do I need small business liability insurance?
If you’re a small business that provides customers with services such as repairs or design, it may be necessary to have liability coverage. For product-based companies, it may not always be required, so when talking with your agent, make sure to ask if such insurance is right for your company’s needs.
When should I seek coverage?
For small businesses or sole proprietors, liability insurance is worth considering if you offer services instead of products. For example, if you are a computer programmer, laborer, or an architect, you may benefit from such coverage. In some cases, clients may require you to purchase insurance before you perform any subcontracted labor for them. When considering coverage, however, be sure to assess the risk of lawsuits in your profession. Making large payouts on a small business after such a suit can bankrupt you if you’re not careful, so if the risk is high, it is good to stay insured.
When do I not need coverage?
Product-oriented businesses tend not to need this kind of insurance as much as service-oriented businesses. If you are a sole proprietor or small business that sells merchandise, including handmade items or products for multi-level marketing companies, or you run a brick-and-mortar small business, professional liability is not necessary, as it does not protect against products that are defective, problematic, or otherwise harmful in some way to the customer.
If you want to upgrade your small business or sole proprietorship with business liability insurance in Smokey Point, American Insure-All® is just a phone call away from giving you the help that you need to do business safely. For more information on the types of insurance that we offer, or to speak with our team about your business insurance needs, call us today at (888) 411-AUTO.