If you are an entrepreneur or small business owner, liability insurance is something you need to have. It is as vital as coming up with the rent every month. Recent research statistics confirm that about 80% of all U.S. businesses are a sole proprietorship or some manner of partnership. The inherent danger in this as a small business owner is that, quite often, your own personal assets are at risk. Liability insurance can offset those personal risks and will prevent your, business, as well as your personal life, from being destroyed.

• Just because you LLC yourself, or your company, does not mean that you cannot be held personally responsible in certain situations. These could include such instances as you having personally done someone physical harm or you have done something deemed illegal by law. Also, if you are, basically, a DBA and your business is not separate from your personal self or you have personally guaranteed or co-signed for a particular loan.
• Meeting with your risk and insurance advisor will help you determine the type of liability insurance that is right for your particular situation. Liability insurance will protect you and your business in the event of a lawsuit related to such things as property damage, faulty products or services, and injuries. In addition, your liability insurance coverage may include all of the legal costs you will assume during such a time.
• The different types of liability include product liability, general liability and professional and personal liability. Again, your risk and insurance advisor is one of the most crucial members of your team so execute coverage that will best suit your professional situation.
• Costs can vary according to where you are and the type of industry you are in. In addition, September 11^th and the Crash of ’09 has made things a bit skittish out there. If you are in some manner of Chamber or trade group, your insurance advisor may see a way to ensure a group rate of some sort.
• One of the ways to get a handle on how much you may need, or the specific types you may need, research what has been going on in your industry for the last few years. See what your competitors are doing. See what kind of lawsuits and settlements have come down the pike in your industry of late. This will give you and your insurance advisor and nice measuring stick with regard to what you need.

In business, risk is everything. To ignore it would be disastrous. Liability insurance coverage will be a vital link in your business success as well as your future.