In the busy world of commerce, unforeseen accidents and incidents can occur that put you at immediate risk. At the Alexander Insurance Agency of St. Charles, we have come to learn that no matter how much “good energy” you put into your work, there are harmful individuals who look for opportunities to file legal action. Some so frivolous that it is clear they are just playing a “numbers game”, waiting for a payout at another individual’s expense.

After a longstanding nationwide analysis of these occurrences, the estimate is that the average cost of a legal claim by an employee against a business is around $160,000. This is a heavy hit to absorb for any type of business, but for a much smaller operation, it can result in a bankruptcy or even potentially shutting your doors for good. By taking measures to make sure that your operation or trade has the right commercial liability insurance, you can protect yourself from many risks that all have massive costs in the long run. Today, we’ll look at three examples where not having this protection could have serious implications.

The Potential of Peril for a Sole Proprietor:

Many of the small businesses out there today are run by a single owner/sole proprietor. One of the things you must be aware of is that a sole proprietor can bear a hefty amount of responsibility financially if an accident or incident should arise. Any costs or judgements incurred by sole proprietors have to derive from their monthly income or any of the assets they have already accumulated.

Everything may be running smoothly one day, and then all of the sudden an employee may get injured, say during a contracting job. This could result in legal costs along with other forms of compensation, resulting in an astronomical final cost. If you don’t have commercial liability insurance, you would be forced to come up with the money yourself, very quickly in order to remedy the issue. We can provide a clear snapshot of what your risks are, ideal coverage options for you and direction to secure a productive and safe future for your business.

A Policy Addition Due to Legal Obligation:

Depending on which country your business operates in, it may be a legal requirement to carry business insurance coverage, with commercial liability insurance bearing the brunt of the potential for legal issues. When this is the case, not having coverage is likely to result in fines or other forms of legal action against you since you are not in direct compliance with mandated orders. Other entities that you wish to do business with may want you to have coverage as well, to protect both of your entities as you navigate various transactions and interactions. 

Contacting the experts such as us here at the Alexander Agency is always the best option, because our years of experience have allowed us to see how different types of coverage options protect owners when they encounter legal issues and potentially frivolous individuals that are looking for a payout. If you visit a client’s place of work or any vendor comes to do business at yours, there is always the potential that someone would need medical treatment or have another issue. 

Maintaining All-Important Appearances:

In the current climate, many businesses are held to a standard of making sure you have compatible levels of commercial liability insurance. It is one of the best ways to establish strong credibility with others around you, and send the message that you are a thriving professional operation when it counts most. Making sure you have your bases covered as far as commercial liability insurance is also an ideal way of appearing as a top-notch entity when undergoing the task of generating outside capital.

Like many other types of insurance, commercial liability insurance is based upon a thorough assessment of your total risk, and if your business has passed with claims or is in a precarious field such as transport or underground drilling you may pay higher rates. If you’ve just gone into business, your rates may be based on your credit history and could be a bit higher for just the first few years. We are standing by to help with your business insurance needs here at the Alexander Agency, and assure that no misunderstanding big or small will prevent you from providing for your loved ones with the craft or service you always do best!