How Much General Liability Coverage Do You Need?

How Much General Liability Coverage Do You Need?

You know you need liability insurance to protect your company from lawsuits arising from injuries or property damage as a result of your own direct or indirect actions. But do you really have a good grasp on just how much coverage you need? Your commercial insurance package policy probably came with a base level of general liability coverage; in most cases, increasing that coverage is more than just a good idea, it is a must.

Lawsuits Are A Reality

You have probably heard about million dollar lawsuits brought against major companies by people who were injured as a result of negligence. You may even have thought some of those lawsuits were frivolous and unfounded, but the fact that you heard about them probably indicates they went to court. And if they went to court, those companies were forced to defend against them, spending a lot of money on legal fees. Do you have enough coverage to handle those legal fees, and also pay out a settlement if your day in court goes against you?

Many small businesses believe that they will not be the target of such a high dollar lawsuit because they aren’t big names. This thinking is dangerous; while some people may increase the dollar amount of their lawsuit when they know a company can pay, large lawsuits are still often brought against smaller companies. And smaller companies are the least able to absorb the loss if they are forced to fight a court battle and pay out on a settlement. Which is why these companies really do need much more liability coverage than they may believe.

Carrying Enough Coverage

General liability insurance covers you for a wide variety of potential negligence situations, and it is actually one of the less expensive coverages for most companies. When it comes to determining how much you need, the simple rule is that more is better. If the option is there to increase the coverage and it doesn’t make a large difference in your premium, you should always take it.

The cost of a liability claim can rise quickly, and if your coverage limits are met you will be left to pay any remaining costs yourself. If you have ever been involved in a lawsuit you know how expensive lawyers and court costs can be. Add to that the amount that a judge may award the claimant and you are looking at a serious financial loss. General liability insurance is the simple and affordable way to make sure this doesn’t happen; give us a call to be sure you are carrying enough, and increase it if you can. When it comes to liability, better safe than sorry is always the right way to go.

Top Mistakes When Choosing Auto Insurance Coverage

You don’t need to be an expert to choose the right auto insurance policy, but you should be aware of some of the basics that will ensure you get the best rate for which you qualify and are protected appropriately. Here are a few of the most common mistakes made when choosing auto insurance, and the ways in which they can affect you.

Choosing Coverage That Is Too Low

Each state has a minimum requirement for liability coverage. In order to quote the lowest possible rates, some insurance companies will always quote at the state minimum. While this will ensure it is legal to drive your car, the minimum liability limit might not be enough to cover you properly in the event of an at-fault accident, especially if you own a home or condo.

When you request an auto insurance quote, be sure the liability limits are high enough to thoroughly protect you and your assets. If a serious accident occurs and your policy limits are quickly reached, you could find yourself in court facing a lawsuit for the rest of the damages, you can even have a lien placed on your home.

It’s better to be protected correctly in the first place. Sometimes an increase in coverage is only a matter of a few cents to a dollar.

Missing Out On Discounts

The number of discounts offered by most insurance companies today can be a long list. But it’s the major ones that you should pay the most attention to. The discount for having more than one policy with an insurer is often quite a large one. If you own a home, try to have your homeowner’s and auto insurance with the same company. It just makes sense, financially and for the sake of simplicity. You will not only get a discount on the auto policy, but on the homeowner’s premium as well.

Believe it or not insurance companies do offer new discounts from time to time to help their costumers save money on their insurance premiums. It is always important to ask your current insurance agent or insurance representative about any discounts that you might be missing out on.

Skipping Affordable Extra Coverage

Most auto insurance policies have an option for roadside assistance. Some may include it automatically, while others require a small extra premium. This coverage will give you protection in case of a mechanical breakdown, locking your keys in the car, or other situations in which you require help. The yearly cost of adding this coverage is far less than the cost of having your car towed, so it just makes sense to add it, but many people don’t realize it is even available.

Even if you have AAA it is still something that you may want to consider having. If you are in a bind and need to call AAA they might not be able to get to you for a few hours but the roadside assistance that your insurance company offers may be able to send someone out to you a lot sooner.

Small mistakes can cost you a lot of money, and have even more serious consequences. Avoiding them is simple if you are aware of them when you select an auto policy.  We are always more than happy to review your insurance coverage with our customers (new or old) and potential new customers.

Because Accidents Happen

One of the most essential elements of protecting the survival of your business is general liability insurance. While this type of coverage is especially important if you have significant interactions with the public, the sad truth is that in today’s litigious society, EVERY business should protect itself against the possibility of lawsuits.

Perhaps you believe your particular business is so low risk that commercial liability insurance doesn’t make statistical sense for you. In which case, let me ask you a few questions.

• Does your business have a common area such as a storefront or reception area?
• Do your employees often drive as part of their job-related activities?
• Does any part of your business involve the operation of heavy equipment?
• Do you manufacture any item intended to be used by others?

If you answered “Yes” to any of these questions, then you aren’t low-risk enough to even think about passing on general liability insurance.

But even if you answered “No” to all of the questions, you should still make it a point to protect yourself by purchasing a general liability insurance policy. Why?

Individuals can legitimately hurt themselves or cause accidents in an infinite number of unpredictable ways. In some jurisdictions, courts have held that property owners are liable even for injuries to trespassers and thieves. In the event of any sort of incident, the opposing attorneys are more likely to act responsibly if they know they have to deal with a huge insurance company instead of an isolated business. You’ve got enough to deal with trying to make an honest living without having to worry about lawsuits falling out of the sky.

The Daigneau Insurance Agency specializes in matching businesses with the most appropriate policies for their commercial insurance needs. If your company isn’t already covered by a general liability policy or if you would like us to review your current plan, please give us a call ASAP at 401-433-1111.  Let us provide you with greater peace of mind and make sure your business is protected against the vagaries of fortune.