Let us understand why finance and accounting businesses need general liability insurance.
Protection against Common Risks
Businesses are prone to risks. Moreover, accounting and finance businesses are highly associated to risks where a minor mistake causes a massive loss to the company and its client. Nevertheless, there is general liability insurance that is necessary to settle claims arising due to third-party bodily injury, property and personal damage, attorney's fee, judgment or settlement etc.
Let us discuss these aforementioned risks in detail.
For every unintentional bodily injury caused to a client or a third party during the business operations, the company is liable to pay the medical bills of the victim. The company is responsible for looking after the safety of third party in its business premises. In addition, the business is responsible for any mishap caused accidentally or purposely to any third party within the premises. To deal with these liabilities, a general liability insurance is highly recommended for the business owners.
Personal and professional injury
Defamation, such as libel and slander, are part of public liability insurance. An accounting or financial business may be sued or subpoenaed for any personal or professional injury caused to another company or individual.
For example, while advertising for their accounts and financial services, the remarks made by a business may harm or damage the reputation of a person. Under such circumstances, a company is liable to disburse specific costs against the damages caused to the aggrieved party. In addition, the business may also face copyright issue, which may incur massive losses to the company. Well, public liability insurance cover is one such solution to deal with business related legal and financial liabilities.
Fees of Attorney
The public or general liability insurance covers the cost of hiring or appointing an attorney against a lawsuit instituted against the organization. In a business, a client or any aggrieved third party may initiate a legal proceeding against a business in order to get the appropriate compensation for the loss or damages caused.
Hence, it is crucial for small scale business dealing under finance or accounting to purchase the general liability insurance to escape from the liabilities. The public liability insurance for finance and accounting business also indemnifies the company against incurring of a court fees or e-filing of a matter.
A business may lose the ongoing case in a court or tribunal and the court may sentence or award to pay a significant sum to the aggrieved party. Under such circumstances, the insured party may cover the cost from the insurance company under public liability insurance claim.
It is essential to buy general liability insurance for finance and accounting business since no business, whether it is small or large scale is immune against any loss or negligence.