Similar to virtually every other business, your business operations may, at some point, cause injuries and property damage to third parties, including, among others, clients, suppliers, landlords, and pedestrians.
In 2015 alone, about 35,200 people, most of whom were pedestrians and bicyclists, lost their lives in car crashes involving fleet vehicles, as reported by the National Highway Traffic Safety Administration (NHTSA). Such injuries often result in lawsuits and claims against your company assets and finances, which may hurt your business operations. However, you can avoid all these with the help of a general liability insurance policy in NC.
Here are the reasons why your business needs general liability insurance in North Carolina.
1. Covers Legal Costs
Apart from breach of contract and violation of the labor laws, infringing intellectual property rights is also a common cause of lawsuits in companies. For instance, civil and criminal copyright infringements happen every year, with the media industry being one of the most affected sectors, as reported by the United Nations Conference on Trade and Development.
In 2015 alone, more than 5,000 copyright infringement cases were filed in the U.S. district courts, as reported by the Transactional Records Access Clearinghouse (TRAC). Even though the U.S. Federal government may not prosecute you for civil copyright infringement, the owner of the intellectual property may sue your business and claim your assets and finances. If your company faces such a lawsuit, the general liability insurance will cover all the legal costs resulting from the case, hence protecting your business finances.
2. Protects against Lawsuits
Hazards such as fire, floods, strong wind, and hurricanes can lead to property damage. Between 2010 and 2014, about 7,410 structure fires broke out in restaurants and bars establishments every year, causing massive property damage, as reported by the National Fire Protection Association (NFPA).
If such damages happen in your rented business premises, your commercial landlord may file a lawsuit against your business and claim compensation. Even worse, if the court enters a judgment against you, it could spell financial doom for both you and your business. Thankfully, if you have general liability insurance, you can use it to cover all the costs of damages and prevent the landlord from suing your company.
3. Lowers Business Expenses
The main expenses for an average business include, among others, employee salaries, premises rent, buying and renting equipment, supplier expenses, and utilities.
Usually, the objective of every business is to minimize costs and maximize profits. However, third-party injuries and property damages at the workplace are liabilities that increase business costs through medical expenses and claims. For instance, suppose a group of high school students visit your company on an academic trip. An accidental explosion occurs, resulting in a stampede that causes some students to sustain bodily injuries. In such a case, the school can sue you for injury claims and medical costs that will have to be paid out of your business savings, thus increasing your costs.
On the contrary, if you have general liability insurance in North Carolina, the insurance carrier will cater to the medical costs and any other costs incurred due to such injuries, thus saving your business from unnecessary expenses.
These are some of the reasons why you require general liability insurance for business. If you want to know more about general liability insurance, contact the experts at Pittman Insurance Group,LLC for all your coverage needs. Our team is willing to assist with all your insurance questions and needs.