For many small businesses, operating without liability insurance in order to cut down on operating costs can create risks and costly concerns. Operating without any liability coverage is a dangerous practice that most small business owners simply cannot afford. By not having a policy you become exposed to the possibility of frivolous lawsuits, the type brought against companies with alarming frequency.
Studies show that the cost of defending a claim without insurance can easily put a small business into debt or even result in bankruptcy. Small business insurance in Florida can end up saving you from financial disaster, meanwhile there are ways business owners can reduce their rates for this vital coverage.
Keeping costs affordable and reasonable
Aside from implementing a sound quality control or risk management program, there are several other steps companies can take to maintain affordable small business insurance coverage. Business liability insurance coverage ranges by company, so read up on, and review policy plans from several insurers while comparing rates.
You might want to consider a business owner’s policy or BOP. Rather than purchasing separate policies from different companies, purchase a package of policies from one insurer. When receiving an insurance quote on a BOP, be sure you understand what is included in that coverage.
Certain policies cannot be included in a BOP and must be purchased separately. Your agent can help determine which policies you need, and which can be part of your BOP program. If your small business operates in a niche, it may require specialized insurance to safeguard against unique risks. Insurance brokers know what types of coverage are necessary to your industry and know where to go for competitive rates.
While the cost of safeguarding a business and its owner with liability insurance comes at a price, a little due diligence can help in finding the right coverage for you. Small business insurance in Florida will not only protect your business from costly litigation, it will also provide a solid foundation for success. Having adequate coverage can be one of the most important steps a business owner takes in ensuring his or her company’s survival.