General liability Insurance is for not for small players; it is only for Big Players!” – “Only large corporations require such policies” – “I own a small business, so I have nothing to risk; why take out insurance coverage?”
Do you present the same arguments when someone suggests you to get your (small scale) business insured? – If the answer is yes, then it is high time to change your stance!
From day one since the whole concept of insurance came into existence it is widely believed that insurance is for risk-takers.
It is believed that such insurance plans are for someone who earns millions and has so much that a single instance of loss becomes irreplaceable – This isn’t true anymore!
No matter whether you head a million dollar company or a small scale household business – you are always at “risk” of getting into a financial or legal mess. With the lawsuits becoming a commonplace thing, any business owner can be faced with loss due to property or personal damage and can even be slapped with legal notices or compensation claims.
Once into the legal tangles, you may have to part way with your hard earned money in one way or another. And this becomes the last blow on your still-infant, small scale business; it is only with a strong monetary reservoir that you can turn things into your favor.
General Liability Insurance certainly acts as a protective padding; it mitigates the harmful effects of financial setbacks. You ask “how?” – Alright let’s take up an imaginary situation: You own a small manufacturing firm – Faulty machinery causes fire in the factory; and everything reduces to ashes – Though no one suffers any injuries – you still have to bear immense financial loss due to damaged property.
In the wake of such a grim situation; insurance provides a strong monetary back-up. In fact, you get a good amount with which you can again set up your business.
Apart from covering you from “property damage”; it even covers (financially) you, even if you are slapped with a legal notice or have to pay heavy compensation claims. There are many chances that due to your service or product, you may unintentionally cause grave personal harm.
Let us see another example – Somewhat similar to the above narrated situation: There is a fire in your factory – and it causes severe and fatal bodily injuries to the people working – You have to either pay for their medical expenses or in the worst case even pay a hefty amount as compensation.
These “liabilities” are covered by a general insurance plan, which helps you to quickly recover monetarily and hence the impact would be much less than expected. Your limited funds will not be directed in paying for damaged, lost or stolen property, neither will it be wasted away in settling the compensation claims.
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