Misconceptions about Liability

Posted on: September 10th, 2013 by SRSblogger

Perhaps the most common question we here from business owners is “Do I need business insurance?” Yes, even in today’s world where fast food restaurants are sued because people who knowingly ate unhealthy food had health issues, some business owners still don’t know if they need liability coverage. The answer is and will always be an overwhelming “YES!”

Liability Insurance

Sure, being covered means a little more money out of your pocket, but it protects you in the event of an accident that could have an attorney going after you for everything you have. At Southern Risk Services, we hear excuses and reasons every day as to why business owners think they don’t need liability coverage.

We’ve chosen our favorite three to show you why these excuses need to be retired.

“Nobody will sue me. My business doesn’t make a lot of money; my business isn’t collectible.” EVERY business is collectible and every business can be sued. Once a money judgment is rendered against your business, it doesn’t just go away. Your wages can be garnished, accounts and assets seized or equipment seized and sold in order to pay the judgment.

“Since my business is a corporation, I’m protected from liability, so I don’t need insurance.” While the corporate format protects individual owners, officers and investors from personal liability, this shield can be brought down in certain situations. Then, they can take you for your house, your car or any other asset that will pay the judgment.

“Even if I die or become disabled, my work partners and my family are great friends! They’ll be able to work things out nicely.” Most small businesses don’t survive the death of an owner or other principal member, and though they may be friends, family members and work partners often times don’t work things out.

So why leave things up to chance? Wouldn’t you rather have peace of mind knowing that you’re covered in an accident or that your business will keep going after you move on? Again, liability insurance and other forms for coverage for your business are a must!

If you have any questions, the knowledgeable staff at Southern Risk Services can help you understand the ins and outs of what your business needs. Get in touch with us today!


Tags: , ,

Comments are closed.