As a business owner, if someone suffers an injury on your property, he or she could hold you liable. You may end up in court if you are not careful about securing the proper insurance coverage.
Entrepreneur explains that it is best to have general liability insurance coverage for your business, which should protect you against injury lawsuits. It provides coverage for valid claims against you for injuries caused by your negligence or on your property for which you are liable under the law.
Rented business space
If you rent a business space, your responsibility will typically extend to any area inside and immediately outside of your business. Your lease should stipulate your responsibilities. For example, you may or may not hold responsibility for parking lots. The owner may take on that liability, but you should make sure you understand what your liability is. Typically, a commercial lease will include a requirement that you carry general liability insurance.
Home business space
If you have a business at your home where customers will come onto the property, you cannot rely on your home owner’s or renter’s insurance to provide coverage. Many such insurance policies will specifically exclude injuries related to a home business.
It is a good idea for protection purposes to have separate insurance for your business. You want to ensure that your business has protection against any claims someone may bring regardless of how you have set up the ownership, but even if you are a sole proprietor, you still need separate business insurance. It might be more important since you can face personal liability for your business.