A lot of people dream of being their own boss. They want to own their own business and know that the hard work they do every day goes into their pockets instead of the accounts of giant corporations. Of course, nobody starts out huge. We start small and decide how large we want to grow. You may rent a building to work from or you may want to work from your garage. Either way, you will need a business liability insurance.
My “office” is my house. I will just claim it on homeowners
While you may think your insurance agent lives under a rock, he actually stays pretty up to date. He will send an inspector and it will take him less than a day to determine that the garage or shop is being used for business. They will not cover the claim. They will not cover the business equipment, injuries, or losses.
Workmen’s Comp or Cash Out
If you are not paying workmen’s compensation, your workers will not get paid. You will get some hefty fines though. Also, they have every right to seek damages in court.
Understand this. If you have Workman’s comp, you may take the payment they offer to you weekly. However, you do not have to. Many people believe they will get more if they just sue you. So, you can make them an offer to make everything go away. It would be a lot less costly to have business liability insurance.
It May Not Be Your Fault, But It’s Still Your Fault
People get hurt. Sometimes it is just not your fault. If it is icy outside, and the sun melts the walk, it may or may not be your fault. If it just began thawing, you could be in a period of time that you would not be expected to know it could be thawing. But if it has been thawing for hours, you “should have known” the walk was dangerous, and you can be held liable for someone falling.
If there is a broken handrail walking into your place of business and it has been broken for months, you are responsible, if someone gets hurt, trying to get in your place of business, large or small.
I Don’t Have The Money, So Sue Me
Be careful with what you say, because that is exactly what they can do. They can take you to court and sue you personally and sue your business. You can end up paying them for a long time.
Well, what can I do?
Great! Now is the time to start. Being prepared is always where you start. Below are some points of action. No matter where you are on the list or where you think you are, start at the beginning. Make the call. You might be amazed at what experts can do if you let them try.
- Buy business liability insurance. Let the agent help you select the correct coverage. It is inexpensive. Even if you have something working against you now, cover tomorrow. Don’t you wish you had done this yesterday?
- Buy Workman’s Compensation insurance
- Take a complete inventory of everything on your property that belongs to the company.
- Note: it is a good idea to attach a photo and copy of the receipt to the reports for faster recovery if something is destroyed or stolen.
- Make repairs to the general area of your employees and customers (or visitors) use. If you have a slippery place that is hard to thaw in the winter, have a sign to place nearby.
- If there is an accident, take action.
- First, care for the victim
- If they are hurt, call 911
- Follow the instructions the 911 operator tells you to
- If anyone else is in the office, ask them to take pictures of the scene, including anything they may have fallen on,
- Turn your phone on record so you can record the way they are acting, and the things they are saying while they are waiting for the EMTs.
- Be careful not to say anything about the accident, insurance, or why they fell.
- If they are unhurt
- Ask them to sign a statement that they fell, slipped, or bumped their head or whatever and they are not hurt. Tell them they have 7-days to go to the doctor to have himself checked out or he will be stopped from working. Tell him to bring you a copy of the bill and you will reimburse him.
These steps are minor and inexpensive. But, when you need them they are priceless. Make your calls today. You need the peace of mind that small business owners seek. Once these things are in place, you can spend all of your time making your business grow. That is why you started your business in the first place.
Related: How to Implement AI in a Small Business: A Practical Roadmap
