Commercial Liability Insurance In Arizona: 10 Reasons To Insure Your Arizona-Based Business
If you’re an Arizona business owner, this guide will help you understand the basics of liability insurance in AZ in order to protect your business and assets. General liability insurance protects you in the event your business becomes the subject of a lawsuit.
Arizona businesses ranging from small start-ups to large businesses can take out liability insurance and get policy coverage against legal liability. If you’re a small start-up with few employees or an established business enterprise, you have to get adequate coverage to secure the longevity of your business.
Is Your Liability Coverage Sufficient?
Business insurance plans offer basic liability insurance but this liability may not be sufficient. This is why businesses should consider taking out Arizona liability insurance that takes care of all 3rd party damages induced by your business, including medical expenses and legal processing fees.
Liability insurance can help you fight off lawsuits from competitors and clients, but it can also help your business grow. If you want to expand your business space or form contracts with powerful clients, you must prove you have the insurance necessary to secure a contract. This form of insurance is ideal for protecting your business and fostering business partnerships.
Examples Of Accidents: 10 Reasons To Prepare
Business-owners should know what general liability insurance in Arizona can provide them and how it protects their business. While business insurance policies are focused on insuring things like company vehicles and property, liability insurance is far more extensive and can help you operate efficiently as a business. Here are 10 examples of how your policy will assist you:
- An employee gets in an accident that injures a person and they press charges against the company.
- Business partner requests a certificate of insurance before they let you handle their expensive equipment because they want to know they’re covered too.
- A client walks in your store with wet boots, slips and hits their head. This client later presses charges and claims you didn’t secure the floor against slip-and-fall accidents.
- Landlord requests insurance coverage above $1M dollars before they rent office space in their building.
- The businesses leases expensive equipment from a distributor to facilitate product production and the distributor asks for insurance coverage.
- Company products end up in criminal hands and they carry out criminal acts using your product, then the victim’s family prosecutes you.
- A logistics company renting vehicles for your company refuses to rent them until you purchase liability insurance for your drivers.
- A marketing agency you hired starts spreading misinformation about a competitor and the competitor persecutes you for slander.
- One of your employees steals a design that is patented and you get sued for copyright infringement.
- During a press conference, one of your employees makes a statement that damages the reputation of your competitors and they press charges.
Which AZ Businesses Need Liability Insurance?
Irrespective of whether you’re based in Phoenix, Scottsdale, Tucson, Tempe or smaller towns, virtually all businesses in the state of Arizona should have basic liability insurance. The following is a list of AZ-based businesses that need an Arizona liability insurance:
- Public-Oriented Businesses. All businesses that are open to the public such as restaurants, retail stores, gyms, food stores, coffee stores, etc, need liability insurance. If one of your customers falls on the premise of your business, the court may hold you liable even if it wasn’t your fault.
- Product Manufacturers. If you manufacture a product in the state of Arizona, you could get sued by a client who misused the product and got injured. For instance, if you manufacture guns and someone gets shot by accident with one of your products, you may get a lawsuit. The same extends to products that are otherwise deemed harmless but can be misused.
- Medical Facilities. If you own a small medical establishment you could get sued for medical malpractice by clients who weren’t satisfied with your services. Small medical establishments such as dermatologists or optometrist facilities may also become the target of large lawsuits if a client is injured by accident.
- Property Management Businesses. If you manage client property or you offer storage services, you are directly responsible for the condition of their belongings. For instance, if you manage equipment for clients and it gets burglarized they could take you to court. If you rent warehouses to clients, you must have insures for the value of their private property.
- Office-Based Businesses. If you run an IT start-up, call center, real estate agency or an office-based business you’re going to need liability insurance before you’re allowed to sign a lease. The landlord will request a minimum liability coverage amount before they allow you to lease the space. To expand your space, you’re going to need to increase your coverage limits.
- Product Distributers. If you don’t manufacture or own a product but you serve as a distributor for a large product (Ex. you distribute Pfizer pharmaceuticals in Tucson, AZ) you could become the subject of a lawsuit if one of your clients passes as a result of consuming those products.
- Advertisers. If you slander a competitor and this causes them to lose revenue, they could take you to court. If your company hires a marketing agency and you have little control over where your ads go out and how you market your services, you may become the subject of a lawsuit even though you had no part in developing the marketing campaign.
- Online Services. All Arizona-based companies that offer their services exclusively online could benefit from liability insurance in case one of their clients or partners decides to press charges against them. For instance, online casinos, payment services, gaming companies and other IT businesses that operate online but are based out of Arizona could benefit from liability insurance.
Liability Insurance AZ: What Protection Do You Get?
Your Arizona-based business gets 100% coverage for damages done to 3rd persons and businesses. Liability insurance is designed to serve as a safeguard against lawsuits that arise from direct or indirect damage your business inflicted on others. This could be a result of your own negligence or it could be an accident that you’re not directly responsible for.
- With liability insurance, you’re covered in the event you cause damage or someone files a frivolous lawsuit against your business.
If the court finds you “not guilty”, you’ll have to spend tens of thousands of dollars defending yourself and making a legal case. The coverage defends you from all possible outcomes when you’re dealing with the public at large: Clients, partners, distributors, contractors, and more. Finally, you have a choice in regard to total coverage and deductibles. Consult your insurer to find out how to increase your liability coverage.