Risk is an inherent element in any business undertaking. There is always a chance that something will not go according to your expectations, putting you in an awkward position. The sooner you recognise this aspect, the faster you can take measures to mitigate the effects of unprecedented events. Indeed, insurance policies are one of the safest ways of safeguarding your business against many liabilities, damage and loss. Modern insurance providers keep track of the evolving business risks and tailor-make their policies to suit your business needs. If you have a new enterprise, here are some of the risks you can insure through a general liability policy:
Property Damage and Bodily Injuries
Does your business involve handling other people's property? If so, you need a general liability policy to manage the financial losses from claims made against you by customers. For example, consider a case where you run a cleaning company that requires you to send service providers into people's homes. They could break a window or damage an appliance, leaving you open to a compensation claim by the customer. A general liability policy covers such incidences. Additionally, it also covers employees who may suffer bodily harm in the course of performing their regular duties. It can be an addition to statutory employee covers like worker's compensation to guarantee reasonable compensation for those who suffer any injuries.
New businesses often face the great challenge of cutting out a market niche for themselves. Often, you will experience this in industries with monopolies or players who have been in the market for a while. You will have to come with catchy taglines, branding, logos and symbols that your customers can identify. The risk of doing this is overstepping and using someone else's work. It exposes you to copyright claims, regardless of having used the other party's work without knowledge. Thankfully, general policy claims cover such risks, giving you some peace of mind as you advertise.
Reputational Harm and Advertising Injury
Business is all about competition. In doing so, many newcomers find themselves calling out their competitors as they seek to pull customers away. There is an inherent risk of saying something or doing an advertisement that harms the reputation of your customer. Subsequently, the other party can take legal action and seek financial compensation for any loss resulting from your comments and advertisement. Fortunately, you can use a general liability policy to cover the claims resulting from harming another company's reputation.
Contact a company like MGA Insurance Brokers Pty Ltd for more information.