Not Getting Sued is Good: 10 Common Sense Insurance Tips for Small Businesses

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Not Getting Sued is Good: 10 Common Sense Insurance Tips for Small Businesses

If you ask a room full of veteran small business owners their opinion on Professional Liability insurance, you are likely to hear a wide variety of answers. The fact is that in business mistakes are bound to happen and clients will not always be satisfied. We all want to avoid harm coming to our livelihood (or at least minimize the effects of a potential lawsuit) and everyone has his or her own ideas about how to go about protecting themselves. Solutions that work for one industry segment or personality type may not work as effectively for another; some rely on luck, and others won’t take a client without multiple strategic precautions in place first.

Regardless of your professional style or business type, to prevent negative events from escalating to the courtroom requires relationship building skills and good old common sense. Here are a few thoughts on how to avoid a lawsuit:

1-        Do a great job.
You are a small business because you have a specialized skill so be exceptional at what you do for clients and don’t get sloppy. Double check, be cautious, follow basic rules and deliver what you promised on schedule.

2-        Be nice.
Treat your employees and clients with respect, honesty and kindness and they are less likely to sue you.

3-        Don’t sue others.
Do what you have to do but realize that if you sue, you need to be prepared for a countersuit. Always try and resolve problems outside of litigation first.

4-       Establish best practices.
Both internally and with clients having set procedures in place for all business processes will make it easier to set and live up to expectations.

5-        Use your intuition.
If you get a bad feeling about a potential client, try to avoid taking on the project. A 30-year small business owner once told me, “The best insurance I ever used was knowing which clients not to take.”

6-       Oil the squeaky wheel.
Sometimes you have a difficult or unreasonable client you can’t afford to refuse. In that case you may have to bite the bullet, reign in your ego and be humble and calm to finish the engagement with minimal conflicts. When you’re done, try to avoid them and clients like them.

7-        Write a solid contract.
Have a lawyer write you a solid contract that limits your liability and your exposure on each engagement to the amount of revenues generated from that client. Try at least to have a strategic plan in place for who is accountable if something goes wrong.

8-       Expect the unexpected.
No matter what you know, what you’ve experienced or what you’ve heard about, there are environments that are uncertain and potential exposures which you can’t envision. When you really focus on what makes you and your business vulnerable, you’ll realize that there are risks that are “controllable” and others that are “uncontrollable” and perhaps more that are “unknowable.”

9-       Assess your risk tolerance.
If you are a one-person company, as well as CEO, CIO, and CFO, you are also your own RM (Risk Manager). Eliminate any “unnecessary” risk that can be discarded without adversely affecting your income. Surround yourself with trusted advisers, plan ahead, keep the lines of communication open and identify and utilize all the resources at your disposal.

10-     Get insurance.
Insurance is a competitive edge. Litigation is a time-consuming, draining, frustrating and expensive way to solve a problem….or defend a bogus accusation. Being sued can, at its best put you behind schedule and at worst put you out of business or cause bankruptcy.  A close competitor without it will have less time to dedicate toward satisfying its customers and less money to enable the business to survive.

Insurance can’t prevent you from being sued but it can cover the cost of a lawyer and damages if you need it. By supplementing your business insurance policies with common sense, I think you’ll feel safer, clearer and more comfortable, about what can happen and potential consequences.  Although I strongly believe there’s a lot to be said for common sense, in today’s business world you still need to supplement your intuition and luck with appropriate insurance. BizInsure’s goal is to help you be an educated insurance consumer and eliminate redundancies or gaps in your coverage. If you have any questions about your insurance needs, we’re here to help.

BizInsure Guest Blogger: Tanya Weliky

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Lakesha G
17:19 21 Jul 21
Excellent solution for writers and authors professional liability policy as well as coverage for copyright and trademark infringement. Service was prompt and excellent.
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Done in less than an hour!
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Efficient, and great value. The agent was able to give us a quote and a new policy in a short period of time. Thank you
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20:30 24 May 21
I had a great experiencing obtaining several of my insurance needs as a landscaping company here in Northern Colorado. BizInsure's team took care of my needs and was very responsive to help with paperwork needed to secure a potential client account!
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Very efficient they were able to help me out with my request promptly....highly recommend this companyI am very happy to have them
Elba Perez
Elba Perez
18:50 26 Apr 21
I need a help getting errors and omissions insurance along with general liability. Jose was very friendly informative and was very patient with me during the process. He found me some of the best rates for the coverage that I needed. Highly recommend
Casper Martinez
Casper Martinez
19:51 20 Apr 21
I had numerous conversations with several business insurance agents over a month's time. I also had several conversations confirming the policy inclusion/exclusions and asked many questions. My BizInsure agent was professional, knowledgeable and most important—detail oriented. Even after having an initial conversation a month earlier he knew and *remembered* all my personal/professional insurance needs. When I asked for additional information on the third call he was able to provide me with details very quickly. He was also VERY patient. That is a big plus in my opinion. It illustrated a high level of respect for my needs. I also found when I called back and asked to talk with the initial agent, the person who answered the call was able to get in contact quickly and my agent responded and returned the call within 5-10 minutes. The transaction was smooth, and I think it's a good sign should I ever need to make a claim. I highly recommend BizInsure.
Poetic Films
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Sandra Darjean-Murphy
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Jusephine Ghong
Jusephine Ghong
17:58 23 Mar 21
The rep was extremely helpful actually lowered my quote and made sure I was covered to fit my needs with my growing business! 5star!!
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Excellent service and prices.
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S & S Professional care llc Home Health Agengy
S & S Professional care llc Home Health Agengy
04:15 24 Feb 21
Mr. Daniel Scott was very responsive to my professional needs.
Stephanie Woodruff
Stephanie Woodruff
17:38 18 Feb 21
Eugene deserves a raise! First time purchasing insurance and he made the process so simple for me. His patience and attention to detail left me feeling confident in my decision to choose BizInsure. Gracias Eugene!
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23:32 17 Feb 21
DIVINE FIJIANS HOME CARE SERVICES
DIVINE FIJIANS HOME CARE SERVICES
22:49 05 Jan 21
The customer service provided by Jose was outstanding. He explained everything in a very clear/logical way and answered all of my questions. After providing all the information to obtain general liability insurance, Jose sent me the declaration page of the insurance for review. All of the information matched what I provided over the phone and there were no typos. The next day I called back to purchase the insurance which was easy and fast. Overall, my experience with BizInsure including the customer service by Jose exceeded my expectations.
Joe Wajdula
Joe Wajdula
03:29 12 Dec 20
Hiscox/BizInsure made getting Liability Insurance very easy and reasonable.I expected it to be a long and complicated process and it was a nice surprise that they made it so uncomplicated. Thank you. Lisa
Lisa Word
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Eugene was incredible. I called 4 other brokers before him who were impossible to get any help.
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15:16 29 Oct 20
Very quick to get in touch with you and good with follow up. Had some trouble retrieving my quote to log into my account initially but Daniel assisted me and the changes were made to get me into my account. Great value for the money.
Fran Sutton
Fran Sutton
16:34 20 Sep 20
Very happy to be insured with this company. Professional, Timely, very helpful. Thank you Juan, you made it so much easier for me to understand.
Aileen Day
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19:55 15 Sep 20
This company responded when I needed them to respond while facing a deadline. They are an excellent choice for business Insurance.
Michele Harris
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01:52 12 Sep 20
Jose Quintero took such great care of me and was very patient explained everything I did not understand and got me set up quickly. Fabulous customer service
Christina Rose
Christina Rose
02:41 27 Aug 20
I can't say enough good things about Daniel Santos kind and effective communication skills as an insurance agent. Daniel was so pleasant, friendly and efficient with helping me obtain insurance as a teacher. If I were to give Daniel a grade, he has earned an At . He made the process easy to understand, it was far easier than what I anticipated. Nancy S.
Nancy Sloan
Nancy Sloan
00:47 26 Aug 20
I was in need of professional liability insurance for my sole proprietorship. A friend referred me. Everythng was quick and simple and AFFORDABLE!
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hope jones
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If you need Private Home Care Provider insurance for your company, BizInsure, LLC can get it for you!
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Tanya Sweet
19:51 14 Jul 20
I was tryi9ng to find commercial liability insurance for my new comp-any and BizInsure was easy to use and very affordable which is great for me as a new business.
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19:01 14 Jul 20
Great service, but they're also extremely patient. I called over a month ago for specialized E & O coverage, and Bizinsure was able to put me in touch with an extremely reasonable quote. Absolutely invaluable time and monetary savings to be had by going through these folks. If you can-- ask for Anthony. Absolute gem of a human.
James Lang
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18:19 02 Jul 20
Ken M
Ken M
23:21 28 Jun 20
Great service insurance prices are great for professionals looking to get insurance for businesses....
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22:34 22 Jun 20
The provided very professional service and made the process easy.
Paul Rising
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21:51 04 Jun 20
Bradley Hoyle from the Biz Insure team was excellent to work with. Everything was quick and smooth. Great service, much appreciated!
Kristene Smith
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02:03 04 Jun 20
Anthony Spencer was great!! Very quick response time!! He was very Professional! I would suggest him because he helped me find a affordable rate and explained all the technicalities..
Fre Hall
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16:38 28 May 20
I was referred to Bizinsure by a industry trade group that I am a member of. It was easy to get a quote online and then received excellent customer service from Bradley H. to complete my policy purchase over the phone. I have shared this company information now with other business owners for their policy needs.
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22:11 08 May 20
This company was very precise with explaining services and made sure I chose the right business insurance coverage, great customer service at purchasing.
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01:30 05 May 20
Amazing
Jasmine Q
Jasmine Q
14:31 02 Dec 19
Trish is the most patient, professional and understanding insurance agent I’ve ever worked with. Trish has taken care of all my business insurance needs for the last couple years. I am really happy that I found an insurance agent that I know will take care of me & all of my concerns. I feel like a valued customer & I appreciate the great customer service that I get every time!!THANK YOU!
Dr. Youssef C. Atallah
Dr. Youssef C. Atallah
17:21 14 Nov 18
Tricia helped me get insurance for my business. The task of obtaining a quote was really starting to frustrate me until I was referred to BizInsure through a different agency. Tricia got me a quote fast, and even took a down payment over the phone and issued the proof of insurance the same day. a+ service, would do it again in a heartbeat!! Thank you!!
Josh Mariscal
Josh Mariscal
18:07 22 Jun 18
BizInsure was a great find! I did not have to fill out applications, and Tricia was able to quote and bind business insurance for me within half an hour.
Allison Young
Allison Young
17:28 21 Jun 18
Started doing business again and needed a policy fast. Ramez was reasonable, helpful and the rates are OK. Buyer beware? Sure, for me it turned out OK this time. Worth a call.
Mark Wallace
Mark Wallace
23:42 13 Nov 17
Daniel Scott
Daniel Scott
15:15 27 Jun 17
Great customer service. I've been very inpressed with my dedicated representative that had helped me navegate my insurence needs. Thanks so much!
Graham Blair
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22:12 23 Jun 17