There are almost 30 million small businesses in the US today. Small businesses like yours are regularly sued by other businesses, their customers and their employees, and litigation amounts to more than $100 billion each year. Let’s look 3 of the most common lawsuits that small business owners face. In each case, you’ll be thankful that you’ve got small business insurance in place.
We’re starting our list with burglary and theft, which accounts for the most claims but typically the smallest dollar amounts. 20% of all insurance claims filed by small businesses are because of burglary of theft by customers or employees. You can reduce having to claim against your small business insurance policy. Protect your business with these preventative measures:
Theft can also include cyber theft, which many small business owners haven’t considered. Internet (Cyberspace) Liability coverage provides professional liability (errors and omissions) coverage for companies that are operating on the internet. There are various forms available and some provide coverage to defend against patent infringement, virus introduction or violation of confidentiality.
Small business owners are particularly vulnerable to HR-related lawsuits. There is more than a 10% chance of an employee suing your small business. If you are not aware of Labor Laws, some of your administrative or managerial practices could inadvertently result in discrimination.
Without the guidance of an HR professional, it is easy to make mistakes that could send you to court. You should remember that good intentions are not a defense against Labor Law violations. Harassment suits and wrongful termination are common. So is discrimination, for example discrimination because of pregnancy, disability or age. 3 Preventative measures that you can take are:
Breach of contract is when your small business violates a legally binding contract. This could be with a vendor or a client. For example, you can be held legally accountable if you violate a service agreement or a non-disclosure agreement. Things that fall into these kinds of lawsuits include delivering damaged or incorrect goods, failing to deliver goods or failing to pay for goods after you received them.
Your small business insurance could save your business if claims are high. But, before it gets to that, you can put agreements with vendors and customers in writing. The contracts should include
Besides taking preventative measures, what can you do to protect your assets? Investing in the right small business insurance is imperative. You don’t want to discover that your insurance products are insufficient for your business needs, and you are under-insured. For instance, when faced with claims for medical expenses arising from third-party bodily injury, employee injury or personal injury, will you have insurance coverage for medical costs and legal fees? Before getting a free quote, your insurance agent questions like:
If you are still unsure, your questions about small business insurance policies can be answered by experienced insurance agents at Small Business Liability.
ASK JOHN FOR THE BEST INSURANCE QUOTE YOU’LL GET ALL DAY!