Everyone knows that we do not live in a world where everything goes as planned every day. And, no matter how much a business tries to please everyone, there will always be a customer who believes he was not treated appropriately or sold a product that did not live up to its claims. These are some of the reasons why it is not a good idea to operate without business liability insurance. Business liability insurance can be purchased in two main categories: general liability and professional liability. There are also other categories besides these such as product liability and insurance to protect intellectual property. Whatever the type of coverage, it is not wise to operate your business without business liability insurance because it is a world full of risk.
You are protecting yourself against losing assets in a lawsuit.
It is a mistake to think that if you are a business owner you cannot be held personally liable in a lawsuit. For example, a sole proprietor is personally liable because this person and the business are the same entity. The same goes for a partnership. Even with limited liability business structures a business owner can be held liable if an incident arises out of conducting businesses illegally or not operating separate from personal activities.
… Read more