Most businesses in Texas consider commercial general liability insurance to be a must-have insurance policy. It’s the first thing that comes to mind when people think about insuring their business against any type of loss or damage. The reason why it’s so important is that it protects your business from losses and damages caused by third parties, such as your clients, suppliers, contractors, employees, etc. If you don’t have this kind of commercial general liability coverage, then you could potentially face legal issues and even lose your business if you are found liable for someone else’s injuries or property damage. With that in mind, here is why it is recommended to purchase commercial general liability insurance:
1) Demonstrates responsibility
This one is pretty self-explanatory. This insurance helps protect your company from claims made by other companies who may have been injured due to negligence on your part. For example, if you were negligent in providing a safe work environment for your employees, then another company could sue you for compensation. Or, if you were negligent for your product, then another company could file suit against you for damages. In both cases, having this insurance would help demonstrate your level of responsibility.
2) Shows you’re established
If you’ve just started up, purchasing commercial general liability insurance will show potential clients that you are responsible and trustworthy. They’ll know that they can depend on you to provide them with quality products and services. And, if you do end up being sued, you won’t have to worry about losing your business since you already demonstrated your responsibility.
3) Increases client contracts
Having this insurance will also increase your chances of getting new clients. When prospective clients see that you have this insurance, they will feel more comfortable doing business with you. And, if you have an excellent customer service record, then they will feel confident that you’ll take care of them after the sale.
4) Helps in enhancing your customer base
It goes without saying that having good relationships with your clients is very important. But, what many people don’t realize is that having this insurance will actually enhance your relationship with your clients. Because, when you have this insurance, you’ll be able to offer them better terms and conditions than your competitors. So, instead of competing solely on price, you’ll be able to compete on value.
5) Protects your customers
You might not think that protecting your customers is something that should matter much, but it does. When you have this insurance, it will allow you to make sure that you’re following all safety regulations and guidelines. That way, you’ll be able to avoid lawsuits from your customers.
6) Offers peace of mind
Finally, having this insurance will give you peace of mind. It will ensure that you’re protected financially if you get into trouble. As long as you carry this insurance, you will never have to worry about paying out large sums of money to cover your liabilities.
7) Provides great reputation building opportunities
When you have this insurance, your customers will perceive you as a reliable entity. And, they’ll be more likely to recommend you to others. Plus, you’ll be able to stand behind the quality of your products and services. All these things will go a long way towards building your reputation.
8) Risk sharing
One thing that’s often overlooked is that most businesses today are operating under risk-sharing agreements. These agreements require the owner or operator of the business to assume some of the financial risks associated with their business operations. However, if you have this insurance, you’ll be able to share those risks with the insurer.
9) Creation of employment
This type of insurance allows you to create employment opportunities for other people. For example, if you own a small business, you may hire someone else to help run the day-to-day operations. Or, maybe you’d like to hire another person to work part-time while you focus on growing your business. Either way, having this insurance will enable you to meet both your short-term and long-term goals.
10) Promotion of foreign trade
If you’re planning on exporting goods or services overseas, you need to consider purchasing commercial general liability insurance. This type of insurance will protect you against any legal claims made by third parties who suffer losses due to your actions. If you fail to do so, you could face huge fines and even imprisonment.
Conclusion
So, there you have it. Now that you understand why it’s so important to have commercial general liability insurance, hopefully, you’ll be motivated enough to buy it.