Business ownership is a great way to take control of your financial future, but there are many risks that accompany such a venture. While there are a number of insurance plans that can address these exposures, you need to know what your liabilities are if you are going to purchase enough coverage.
There will be risks with administrative operations and product liabilities, but a significant concern comes from property ownership. Even if you are leasing a facility, the grounds, building, signage, parking lot, and other elements can create an incident or accident that involves damages and loss to customers or the general public. The leading liabilities of property owners include the following:
- Violation of zoning ordinances
- Environmental hazard clean-up
- Injuries that occur to individuals on the property
- Damages or injuries caused by items on the property
- Third-party contractual arrangements (such a lease or mortgage)
- Failing to maintain reasonably safe or hazard-free conditions that result in harm or injury
Business property coverage, such as through a commercial liability policy, afford some protection against the financial elements of claims brought against the business. Following a consistent maintenance plan, implementing a risk management strategy, and continually training employees on the value of safety and awareness can create an environment that has a lower potential of accident and injury.