Most business owners need general liability insurance. It provides significant protection from many types of claims. One of those claims may include breach of contract.
As a business owner, meeting all contract requirements is your goal. Most companies set out to provide an exceptional service. And, they follow through with it. Yet, problems happen. If your company fails to meet contracts, you could face a liability claim. Specific business insurance can help minimize that risk.
Here's an Example
Your business promises to provide a service. In this example, you may be a painter. You agree to paint a customer's home for $2,000. You collect half of that upfront prior to getting the job started. You agree to the terms of the contract. The customer agrees to the terms. Then, about a week before it is set to get underway, something happens. A new offer comes along. It pays significantly more. You don't provide services at the first customer's home. In this situation, the company breaches the contract. It fails to meet the stipulations in the contract.
In this situation, the customer might be able to file a liability claim. He or she may win that claim because you failed to meet the details of the contract. General liability insurance may help in this case. It can help cover that claim up to a certain point.
Do You Have Coverage?
To know if you have this coverage, look at your current business insurance policy. Learn the details of it. You can also call your insurer to inquire about this coverage. It is important to have adequate coverage for this need.
Many companies believe they do not need such protection. You would not do that to a customer. You are not likely to breach the terms of such a contract. However, events happen. You could become ill. Your equipment may need significant repair. Deadline-based contracts are just one example where a problem might arise. Others include providing poor quality work. It may also involve providing inferior products. If you sign an agreement with another company or person, you need this coverage.
General liability insurance is available for most needs. All business insurance agents will recommend it. You may wish to upgrade to a higher level of insurance if the risks are significant. Other tools, such as bonds, can help reduce these types of claims as well. Most importantly, work with your agent to customize your coverage.
Need business insurance? Call The Beckman Company at 800.259.4677 (Muskogee) or 800.699.5905 (OKC) and we can help you get a policy that adequately represents your needs.
We are here to be a resource to help you manage your business and protect against risks. Check out 7 Ways New Business Owners Can Improve Their Chances of Success and Has Your Firm Outgrown Its Business Owner's Policy?