As a small business owner, insurance can protect you against unexpected expenses and serve as a cushion to financial risk. Liability insurance in particular is useful in protecting your small business finances from claims for injuries and damages while on the job. But you may wonder what it is and how to get liability insurance for your small business.

This guide covers how to get liability insurance for a small business, including: 

  • What is liability insurance?
  • Why is liability insurance important to small businesses? 
  • How can you get liability insurance for your small business? 

What is liability insurance?

If you’re wondering how to get liability insurance for a small business, you may also wonder what it is. Liability insurance is insurance that protects you from claims against you and your business that are the result of damages or injuries that happen as a result of your business. 

More specifically, liability insurance defends you against unexpected expenses due to the injury or damage of a customer, product, or property because of your services. If the affected party puts you at fault for these damages, and you’re found legally liable or responsible, this insurance can support your business. 

In these instances, the affected party can sue your business or ask you to cover the expenses. Liability insurance will help you pay for the legal costs and payouts if you’re found legally liable. With liability insurance, you won’t have to worry about damaging your small business.

Types of liability insurance

There are a few types of liability insurances that you can get for your small business. Public liability insurance is one of the most popular types of liability insurance. This protects you against claims in the case that a person is harmed while dealing with your business. 

Aside from this, indemnity or professional indemnity insurance protects a business against claims of negligence or harm due to failure to perform services. If you offer business advice and this impacts clients poorly, it protects you from that as well. Then, product liability insurance protects your business against injuries or deaths due to products that you manufacture. 

If you have a limited company and employ anyone, including temporary contractors, you’re likely legally required to have employers liability insurance. This covers costs, fees, and medical expenses due to employee injury on the job. It can also cover necessary compensation. With that said, there are also forms of umbrella liability or general liability insurances that cover most of these things at once. 

Why is liability insurance important to small businesses? 

Knowing how to get liability insurance for a small business is important because it protects your business. Small businesses can be impacted heavily by damages or injuries they’re found liable for. Since these businesses are on a smaller scale, large, unexpected expenses can hurt profits significantly. Without insurance, being responsible for these expenses can harm your business and even lead to bankruptcy. 

Liability insurance can support your business and protect it financially. As a result, you can work towards growth instead of worrying about potential liabilities.  

Aside from this, liability insurance can help you appear professional and responsible to potential clients and investors. In some cases, clients may even ask for proof of insurance before working with your business. Having it will support the value of your business because it shows that you plan ahead for potential financial risks. 

How can you get liability insurance for your small business? 

Now that you know how important it is, you’re likely wondering how to get liability insurance for a small business. To get started, you’ll need to consider a few things. 

Type of business 

First, you’ll want to consider your business type. Each business may have different liabilities to cover and varied levels of potential risk. For example, a business with a shop might benefit more from public liability insurance than someone who doesn’t work with clients in person. 

Then, if you work with heavy equipment, you may need more coverage and have a higher risk than a small business that doesn’t use these things. Taking your operations into account will help you determine what liabilities you’ll need cover to protect your business. 

Type of insurance 

Depending on what liabilities you want to cover, you may need different types of liability insurance. For example, maybe you just want product liability insurance because you sell products online. Or you want a more general type of coverage to protect you from a range of potential risks. 

Whichever type you decide on, the price of the insurance will vary. So, you’ll need to plan for this in your business budget

Get a quote 

Once you have a good idea of your potential risks and what you want to be covered by liability insurance, you can visit an insurance service like Superscript. This will help you find the right coverage for your small business. 

Services like Superscript will help assess your specific small business needs for the best coverage. Plus, it doesn’t require major commitments from you. You can talk to someone about your business needs for help with finding the right plan. 

The Superscript website also lets you get a quote for your liability insurance. By simply clicking ‘start your quote,’ you can follow easy-to-navigate questions that focus on your business type and industry. This quote will give you a clear idea of what insurance coverage you’ll need and how much it will cost. By accepting the quote, you can get liability insurance for your small business.