Each day, you manage tasks, help customers, and solve problems. Sometimes, things
happen that you don’t expect. An accident or a complaint can lead to a liability claim
that will cost you time and money.
In this post, we will show you how to protect your business from these claims. Studies
even show that 40% of small businesses may face one in the next 10 years. The good
news is that we have strategies to help you avoid stress later.
Know What Liability Risks Look Like
Start by learning the types of claims that may affect your business. Knowing where your
risks are helps you make smarter coverage decisions.
● General liability: Covers slips, falls, or damage at your location
● Professional liability: Covers claims related to errors in service
● Product liability: Applies if a product causes injury
● Employment practices: Covers workplace-related claims
Each one might need a different level of protection, and if you’re not sure how much
coverage is right for you, extra liability protection could help cover any gaps.
Build Strong Daily Habits
Once you understand your risks, focus on day-to-day actions that reduce them.
Write simple safety policies and train your team to follow them. Keep records of training
and policy updates. Checklists and walkthroughs help prevent mistakes and show
you’re taking steps to avoid accidents.
Also, review any client agreements or waivers. Make sure the language is clear and
protects your business. For risks that may not be obvious, learn how equipment
breakdown coverage can protect your business from surprise claims.
Keep Your Insurance Updated
Insurance should grow with your business. What worked last year might not cover what
you do today.
Good habits work best when your insurance is also up to date, and these are:
1. Review your insurance once a year
2. Tell your agent about changes in your business
3. Ask about new or expanded options
4. Make sure you understand your coverage
Even small updates to your operations can affect your policy. As you review your
coverage, it’s also a good time to think about cyber insurance and whether it fits your
business needs.
Stay Organized With Your Records
Along with strong coverage, clear documentation can make a big difference during a
claim. Good records help you stay ready if a customer, employee, or vendor raises a
concern.
● Keep signed waivers and contracts
● Log employee training and safety checks
● Track any customer issues and how they were handled
Well-kept records show you run your business responsibly. They also help you respond
faster and more clearly if something goes wrong.
Get the Coverage Your Business Needs
Like you, other small business owners don’t want to worry about what might go wrong.
But taking a few smart steps now can save time, money, and stress down the road.
Our team makes insurance simple. SFM Insurance helps small businesses stay
protected with the right coverage and ongoing support. We’ll review your needs and help
you avoid costly surprises. Contact us today to schedule your policy review.
