Whenever you budget the expenses of your business, Consumer Law insurance must be near the top of the list because you can’t always know exactly what can happen in the future.
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With the protection provided by general insurance and all the other kinds of insurance we will tell you about, you can protect your business and yourself in case something unexpected happens.
Like any business owner, for your Consumer Law enterprise, you must consider how much financial danger you are taking on.
If your Consumer Law business runs without proper insurance, you are taking a giant chance not just of losing some money but of a final wipe-out.
This is because the laws in every state are very strict in enforcing liability on the owners of businesses for the results of their actions.
In this article, we are giving very general guidelines for growing businesses to explain what the main kinds of insurance that you need are, and where available, a rough guide to how much you can expect to pay.
The question is, can you afford to NOT have insurance for your Consumer Law business?
What this means, for any Consumer Law business owner, is that if some person claims that your actions caused them some physical or economic damage, a court can award damages far beyond the total size of your business.
Your Consumer Law business is not sheltered by laws in the same way as states are, where laws can place a “cap” on the maximum level of liability.
In some states, like Montana, there are specific monetary levels that limit the amount a judge can award in any case against the state.
In a court case, it’s purely the duty of the jury to award whatever amount they deem appropriate, even sometimes giving a plaintiff more than they have claimed.
When you are running your Consumer Law operations, you can’t deny responsibility for the outcomes of your actions.
Even more importantly, unless you have spent up-front the money necessary to have your business running as a limited liability company, all of that liability belongs to you as an individual.
What does Consumer Law insurance protect you from?
For your Consumer Law business, the most important types of insurance are intended to cover the risks to your business from accidents, from unexpected events, and from mistakes.
In addition there are some official kinds of insurance that various states require.
In the next few paragraphs, we will outline the most important points any Consumer Law business owner should consider when negotiating the insurance needed.
The main headings of insurance for your Consumer Law businesses are liability insurance, commercial insurance, asset insurance and workers compensation insurance.
General liability insurance
Any Consumer Law business is dealing directly with members of the public, and that means you usually have the danger that some accident can happen to them bodily or else something of theirs can be damaged.
In such a case, they can demand compensation.
General liability insurance policy for your Consumer Law business insures you against claims coming from injury to visitors or damage to their property.
It protects your Consumer Law business from the claims themselves and as well to any resulting court costs and legal fees of the lawsuits.
In many cases, it will even help you to qualify for extra business from city and state organizations, where contracts insist on proper liability insurance.
The average level of general liability insurance for your Consumer Law business would be with a cap of $1 million for a single submission and a total of $2 million for the whole year.
See the table in the costing section below for average prices of general liability insurance for your Consumer Law insurance operations.
Professional liability insurance for your Consumer Law business
In the event where a buyer alleges some negligence, errors, or omissions in how you conducted your Consumer Law business for them, you can quickly face a law suit.
Even if the case against you is judged in your favor, the cost of defense can be substantial, and the impact on your reputation can be damaging.
Every small Consumer Law business should have enough professional liability insurance to cover an individual claim of $25,000, with annual cover of $50,000.
See the table in the cost of Consumer Law insurance section below for average prices of professional liability insurance for your Consumer Law operations.
Product liability insurance
Whatever goods you sell or advice you give about the goods, you are running a risk that clients may claim that the results didn’t meet your description of function, or that your recommendation was basically incorrect.
You need to be aware of the particular laws of product liability in your own state.
For example, in California, all businesses in the supply chain can be held liable for damages caused by products claimed to be defective.
To cover yourself against any likely lawsuit, you need Product liability insurance for Consumer Law
Only you can estimate exactly how much insurance you should get.
Best advice is to contact experienced insurance agents, brokers or company representatives for help.
Commercial vehicle insurance for your Consumer Law business
Be careful! – almost all policies for private vehicle insurance do not cover any event like theft or accidental damage when the vehicle is being used for business purposes.
The best way to make sure that your vehicle is insured for both its own value, and the valuable contents, is by taking out a direct commercial vehicle insurance package.
Commercial van policies insure the value of any vehicle in case of accident, malicious damage, fire, or theft.
Also, in case of any accident, the car itself, the content and any legal bills, medical expenses, and property damage is insured if your truck is involved in a collision.
Most states, other than Virginia and New Hampshire, mandate this type of insurance.
The required value of the insurance depends on the depreciated value of the vehicle, and your declared level of cover of contents.
Tools and Equipment insurance
Since your Consumer Law business needs specialized and costly equipment, you will realize how much it can cost to replace it in case of any damage, loss, or theft.
The equipment may be subject to malicious damage, deliberate fire, theft, other such unexpected acts.
As well, acts of nature like lightning strikes, hurricanes, earthquakes, and other highly damaging natural events can eliminate your whole business in one stroke.
Unless you can afford to immediately replace such unique gear quickly out of your own pocket, you must have full-level equipment insurance so that you can immediately buy everything needed to keep your Consumer Law business running.
It is hard to advise how much equipment insurance you need – it’s basically dependent on how much you have invested in your Consumer Law business’ equipment.
Commercial Property insurance
Any Consumer Law business that owns or rents space in a building must have a commercial property insurance policy.
If you own the space, you certainly have a substantial capital investment, in addition to a big liability if there’s a mortgage.
Your physical building location must carry insurance coverage for the value of the premises and contents against accidental occurrences like fire and storms, and against man-made damages like theft and vandalism.
If your Consumer Law business works in areas of high risk, like Texas or North Carolina, additional coverage may be needed for earthquakes and hurricanes or tornadoes.
In other states like Washington, where extreme cold snaps can cause damage to outer coverings of Consumer Law business premises, there is a need for more additional cover than in warmer climes.
Although the level of cover depends entirely on the value of the property, it’s not possible to say what cover your need, but we have been able in the table in the cost of Consumer Law insurance section below to give some indication of the average prices per million dollars of property insurance for your Consumer Law business.
Temporary insurance by month, week or day for your Consumer Law business
Is your Consumer Law business working part-time or casually, or is the level of business seasonal?
Using short-term insurance makes good sense. Business insurance by the month, day, or week – temporary insurance for Consumer Law – are special policies where you can cover a designated period when you want to be covered.
By only paying for that period of cover, you will save by having less premiums but still having the same risk cover.
The important feature of short-term insurance is that you purchase the cover for a defined period – a nominated date, or a week or month starting on a specific date, for example for 30 days beginning on the specified date.
When you are expecting periods of better business activity, get the existing cover improved.
Talk to your insurance agent, broker or the company’s representatives to see what options you have.
Business Owners Policy BOP for your Consumer Law business
You have the choice to combine most of the important kinds of small business insurance in one policy that is known as the business owner’s policy – BOP.
A BOP integrates commercial property and public liability insurance by amalgamating these coverages into one insurance policy, which can save you money.
BOP insurance will cover you if any claims of injury or property damage are made.
It is often the right choice for small and medium-sized Consumer Law businesses, such as yours.
There are two limits that will dictate whether BOP is suitable for your own business.
BOPs cannot cover your professional liability or commercial vehicle cover.
Also, the size of your business will rule whether you are allowed to take out BOP cover.
The usual business that is eligible for a BOP policy must have no more than one hundred employees, and under five million dollars in annual turnover.
In addition, you must separately take out the necessary worker’s compensation, health and disability insurance as determined for your state.
Workers Compensation insurance for your Consumer Law business employees
In almost all states, it is mandatory to have workers compensation insurance when your Consumer Law business has one or more employees.
Workers compensation insurance covers the business against any costs that arise if an employee experiences an injury or becomes sick as a result of work.
The benefits provide for medical expenses, death benefits, lost wages, and vocational rehabilitation.
Failure to meet a state’s laws in this regard can leave you as the employer obliged to pay penalties levied by the states.
In these states, you can’t obtain your workers compensation obligations from private insurance corporations.
Workers compensation premiums are computed based on the employee’s pay, and usually come out at around $1.00 per $100 per month.
However, you must see the relevant authorities in your state.
Average costs of these types of insurance
Although every Consumer Law insurance level is unique, there are enough examples of average quotes from insurance companies for us to give approximate guidelines, including what are the cheapest rates offered.
Of course, you should always check with an insurance representative what’s relevant for your business.
The list below is of annual premiums we have gathered for the main types of insurance your Consumer Law businesses needs.
|Types of insurance||Price range|
|Product liability insurance||$280 – $553|
|General liability insurance||$658 – $1101|
|Commercial vehicle insurance||$1936 – $3057|
|Equipment insurance||$364 – $1134|
|Commercial insurance||$1051 – $2946|
|Public liability insurance||$357 – $610|
Cost of insurance for your Consumer Law operations depends on many different factors.
We have reckoned these figures for small independent Consumer Law businesses.
The location and size and type of your Consumer Law business can have a big effect on the cost of different policies.
You should consult with professional insurance agents and brokers, or insurance company representatives.
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In addition you can let the internet do the work for you by looking for insurance companies near where your business is located.
Another good source of information is the local Better Business Bureau in your suburb.
What is small business insurance for Consumer Law operations?
This is a wide term used to describe common insurance policies designed to protect Consumer Law business owners from risks like bodily injury, property damage, claims of negligence.
Does my Consumer Law business have to have insurance?
Some of the types of insurance are not mandatory for you to run your business, but they can protect you from risks in your business operations.
Several other forms are required by state law, such as workers compensation and vehicle insurance.
What does a small Consumer Law business insurance policy cover?
Liability insurance provides insurance against lawsuits or claims filed by a third-party for bodily injury, property damage, or negligence.
The precise cover will vary based on your own operations.
See the table in the costing section above for average prices of the best policies for Consumer Law insurance.
How much will Consumer Law business insurance cost?
On top of the size of the business, some other factors, such as location and claims history, are used to determine your policy’s cost.
You should discuss with professional insurance agents and brokers, or insurance company representatives.