Five Reasons Your Business May Need Liability Insurance in 2022
Business liability insurance is necessary coverage in this litigious society
A liability lawsuit can happen to any business.
It ranges from a client slipping on the steps of an office on the way to an appointment to a customer to an employee who is stealing food from the restaurant freezer, the possibility of losses due to liability can be huge. So big in fact, a company could close its doors because of it.
As you audit your business insurance policy, you may want to review your liability coverage, especially as businesses navigate through the “Age of Covid”. According to A.M Best, the renowned credit rating agency, 2021 was the year for liability claims:
Last year, the largest group of COVID legal actions were against insurance companies surrounding business interruption coverage. In 2020, according to figures from the COVID Coverage Litigation Tracker by the University of Pennsylvania Law School, more than 1,200 business interruption cases were filed. In most cases, courts have upheld policy exclusions for pandemic and virus coverage. ***
So, as you make your business plan and whether you should purchase business liability insurance, here are five factors to consider:
1. Maryland state law requires it: General Liability Insurance is required for most business owners. This coverage is designed to protect MD business owners from direct or indirect damages to another party. Liability insurance helps pay for damages caused by the actions of the business, or employees. General liability coverage pays for property damage and personal injuries that involve customers, visitors, and sub-contractors. Business owners in Maryland can choose their insurance deductibles and policy limits.
2. Protects you and your employees: The biggest costs are liability claims from employee injuries in the workplace. Business liability insurance covers workplace injuries, medical costs, reputational harm which may incur from malicious prosecution, slander, libel, wrongful eviction, violating a person’s privacy and other issues, defense costs from lawsuits, judgments, and settlements from a customer or client’s lawsuit.
3. Business liability insurance helps your company's credibility: Coverage for your employees, contractors, and customers shows that your company understands risk and believes in managing it. A gap in business liability insurance not only puts others at risk, but it may lose employees and customers who think of the business as being irresponsible and “fly-by-night.”
4. Employee and Customer attraction: So, if not having business liability insurance turns away potential employees and customers, having it will do the opposite. Employees look for benefits, such as health and life insurance and safe working conditions. Good customers look for coverage when work is being done at their location. Having business liability insurance will naturally bring in the right employees and customers who see your company as professional and honest.
5. Peace of mind: It can’t be measured or budgeted, but the peace of mind that CEOs and managers have knowing that their liability is covered, is worth every penny. Businesses can be conducted knowing that their basic risks are covered.
It’s a litigious society as lawsuits are filed every day. It’s been accelerated by the pandemic. Protect yourself, your employees, your contractors, and your customers by purchasing business liability insurance. See your insurance agent for coverage and quotes today.
Lindquist Insurance carries several types of business liability insurance. Contact one of our licensed and experienced agents for a consultation. Call (301) 694-0008 for a consultation. We serve the Frederick, MD, and Annapolis, MD areas.
*** For more information, visit the AM Best website.
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