New business owners in Florida may find it easy to understand the importance of property insurance in protecting a business from the financial consequences of losses of physical property, such as equipment and inventory items. It’s sometimes more difficult to appreciate the importance of Florida general liability insurance to protect a business from the financial consequences of being sued.
General liability coverage can compensate the business for costs associated with the defense of a lawsuit and settling damages that may be awarded by courts. Your business may be exposed to the risk of lawsuits for anything that your business does that causes clients or customers to suffer financial or physical harm; damages claims could be filed after the sale of a faulty product, a customer being injured in your retail store, or your employee damaging a client’s property.
Of course you and your workers take care to avoid putting your customers and clients at any risk, but misunderstandings, errors and accidents can happen in the best-managed businesses. Remember, too, that unfounded damages claims can be filed by malicious or aggrieved clients. When a business has to spend business capital to pay for uninsured damages and legal fees, cash flow can be seriously compromised. It’s important to protect your business investment from being eroded by the cost of litigation, by purchasing Florida general liability insurance.