If a customer got injured in your store, would you have sufficient insurance in place to cover their damages and avoid any personal liability? You actually might not if you opted to go with the minimum liability policy limits.
That can be rather frightening considering that annually, civil lawsuits hit our American economy to the tune of $239 billion. That’s enough for an $812 claim for every citizen in the United States.
Small Businesses Are Often Under-Insured
A small business owner might wrongly believe that his business is judgment-proof because it is so small. That is a dangerous gamble, however, when you consider that you will need to hire an attorney to represent you should the case not settle readily. Legal bills alone can cut into a slim profit margin and throw your business into the red.
Legal Costs Mount
Most cases settle simply because it is the most expeditious and efficient way to make them go away. If a claim persists, soon depositions will need to be taken and discovery both answered and propounded. Witness statements, expert medical opinions, court costs and attorneys’ fees all add to the costs. Even the most basic slip-and-fall accidents can generate legal bills in the five figures.
But It’s Just a Coffee Shop!
Never fall into the trap that you are too small to sue. Any business entity has that inherent risk. Someone might chip their tooth on the scone they bought with their coffee and you could be stuck with the dental bills.
The leaky sink that creates a fall hazard for your workers and customers can leave you holding the bag for their medical bills, pain and suffering and many other claims. You don’t need seven-figure settlements to realize that you are woefully uninsured.
Catastrophic Claims Won’t Be Covered By Minimum Liability
A sprained ankle or a torn ACL might set you back $10,000 or $20,000. But what if something truly serious like a brain injury occurs on your property? You could see your small business literally go bankrupt defending the civil litigation that arises from a serious personal injury claim and lack of insurance to cover it.
One thing that no business owner has ever uttered is, “I sure do wish I had carried less insurance to cover that premises liability claim!”
Keep Your Business Safeguarded
You may be worrying whether your insurance is sufficient to protect both you and your business from claims for damages. Your insurance agent can help you determine that by reviewing your policy and running some numbers. Simply knowing that you are adequately covered can give you the peace of mind you need to thrive.