For many small businesses, the leap from a home-based business to a brick-and-mortar location is sometimes frightening. However, there are things that can be done to minimize these uncertainties. Investing in business liability insurance is by far one of the best things you can do to minimize these uncertainties.
The Landlord Protects the Building
When you operated your business out of your home, you were probably able to add a coverage component to your homeowners' policy to cover losses for your business. However, do not assume that the policy that the landlord has for their building will also include a coverage component for your business.
The landlord's policy only covers the building — not your business. As a result, if a storm knocked a large tree through the roof, the landlord's policy would cover the structural repairs to the building. Any equipment damage, reduced wages, or other business-related losses would be your responsibility. A business liability policy protects your business.
Accidents Can and Will Happen
Again, the transition from a home-based business to a brick-and-mortar location is full of uncertainties and new experiences. Often, business owners find that the practices and processes that they followed in their homes have to be completely revamped to meet the demands of their new location.
With the transition often comes mistakes and mishaps, even some that are costly. Whether it is water damage, accidental fire, or any other damage to the physical structure of the building, you need business liability coverage to prevent your business from being left to pay for any repair or replacement costs on its own.
Beyond Property Coverage
It is important to understand that a loss to a business can expand far beyond property damage. Customer injuries are a common loss that brick-and-mortar businesses face on a regular basis. Customer injuries can include a slip and fall, falling objects, or any other incident that occurs within the confines of your location for which your business is considered to be the responsible party.
Business liability insurance provides protection in the event the customer decides to file a liability suit. With this policy protection, the business and your assets are safeguarded, and the policy is used to help cover the cost of the legal process.
If you are expanding into a rental office, retail space, or other commercial space, make sure you speak with an agent about protecting your business with business liability coverage.
Reach out to a business insurance provider today for more information.Share