One of the most important things to consider when purchasing insurance coverage for your small business is the location of your business and the type of customers you serve. If you do not have personal and advertising injury coverage.
Then you are missing out on an essential line of defence against one of the most common types of claims made against small businesses – claims involving libel, slander, and infringement or invasion of the right of privacy under the federal Civil Rights Act (42 U.S.C., section 1983). Learn more about what personal and advertising injury coverage means by reading our full article here!
What Does This Cover
Personal and advertising injury coverage is a type of insurance that can help protect your business from certain risks. This coverage can help protect you from claims arising from false or misleading advertising, as well as personal injuries that occur on your premises.
For example, if someone falls on your property due to an unsafe condition, this coverage may cover any costs associated with the incident. You can also purchase this insurance in order to have access to legal defense against claims that arise from such incidents.
How Much Does It Cost
As with most insurance policies, the cost of personal and advertising injury coverage will vary depending on a number of factors, including the size and type of business, the industry, the policy limits, and the deductible. However, this type of coverage is typically very affordable and can be a great way to protect your business from a variety of risks.
It’s important to remember that there are many variables when it comes to pricing so make sure you speak with an agent before making any decisions about how much coverage is right for your business.
When To Take Out This Coverage
You should take out this coverage when you first start your business. That way, if someone sues you for libel or slander, or if you accidentally injure someone, you’ll be covered. This type of coverage is also important if you have a lot of customers coming in and out of your business, as it will protect you in case of any accidents. It’s not just about protecting yourself; it’s about protecting the people who come into your business too.
A lot of business owners overlook this form of coverage because they’re under the impression that they’re unlikely to make mistakes. However, it only takes one incident to cause you tens of thousands of dollars in damages. If there’s an accident at your store, then lawsuits could mount up quickly and lead to bankruptcy.
One lawsuit can result in high legal fees and lost profits while injuries can cost you on-going wages and other medical expenses
When Not To Take Out This Coverage
If your business is at low risk for being sued for things like libel, slander, or false advertising, then you may not need this coverage. Also, if you have a small business with few employees, no customers, or no revenue, this coverage may not be necessary. However, in the event that you are sued by a customer or an employee, without this insurance, you could find yourself on the hook for potentially huge legal fees and settlement costs.
For businesses who rely on social media to reach their clients-as, many do-advertiser liabilities can be especially tricky to navigate without the proper protection. The thing about using social media to reach new audiences is that it’s interactive, meaning that followers see what you post on your page, even when they don’t follow you back. The result is More potential lawsuits from disgruntled customers because they don’t feel heard by your company.
A single lawsuit against a company can mean months of legal battles and hefty settlement costs. And while most companies would never intentionally misrepresent themselves online, advertisers still face significant exposure risks if they’re not prepared to protect themselves with advertising injury coverage.