It's important for every business owner to have Michigan general liability insurance for their company. This ensures that they will have protection if someone is injured or suffers property damage due to an accident related to the premises or certain operations of their company. It is imperative, however, for a business owner to recognize how much general liability insurance they should have. Without knowing this, they run the risk of paying too much or not being properly covered if an accident does occur. Either of these instances can be detrimental to a business of any size.
It may seem strange to consider, but where a company is located should play a big part in how much coverage a business owner decides to get. While it would seem as if a broken leg, or any other injury, would receive the same amount of compensation anywhere, this is simply not the case. There are some states, and even localities, that end up rewarding far more substantial damages to those injured by a company's perceived negligence. This includes not only compensatory damages, but punitive damages as well.
Amount of Risk
Maybe the most important thing a business owner needs to consider when deciding their coverage needs is just how much risk their company actually presents. This isn't to say that a specific company is dangerous, but there's no doubt that some industries present more of a perceived risk than others. If an accident at a company is likely to cause serious injury or death to a person, it's extremely beneficial for that company to get more coverage than a company that only presents minor risks.
Consider other Policies
There are several types of insurance policies that every company should have. Considering other policies, however, doesn't mean that general liability insurance shouldn't be purchased. What a business owner can do, however, is consider simply purchasing a "business owner policy" (BOP). This policy will actually combine all of a business owner's necessary coverages into a more simple policy. This will allow a business owner to really assess their risk and coverage needs when speaking with their insurance company. Additionally, it's very likely to save them money as well.
There's no doubt that every business will need different amounts of general liability coverage to keep themselves and their business safe. A construction company, for instance, will usually require far more coverage than a company that simply sells bracelets over the Internet. Recognizing potential risk is the most important step in ensuring proper coverage. Once this is handled, a business owner can usually rest comfortably.
If you need more information on what amount of coverage is enough to protect your business, give Insurance Planning Service a call today at 734-421-9900.