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METRO32168

GENERAL LIABILITY INSURANCE REQUIREMENTS

4 posts in this topic

I JUST INCORPORATED A SMALL BUSINESS,

WHERE I AM THE ONLY EMPLOYEE/OWNER.

AM I REQUIRED TO HAVE/PURCHASE LIABILITY INSURANCE?

ACCOUNTANT SAYS NO,

CUSTOMER SAY OTHERWISE.

PLEASE HELP.

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Your accountant is right. You have no obligation to purchase liability insurance. Though you'd be a fool not to have it.

However, your customers are your bosses. If your customer won't do business with you if you don't have the insurance then you buy the insurance if you want to do business with that customer.

If you are in some sort of service business where you do work for people at their homes or businesses or you work on their belongings at your own location, many of your customers are going to want you to provided evidence of insurance.

My advice: If you want to make a success out of your business buy the insurance.

If you are satisfied working fly-by-night for peanuts for people who don't care, that's your choice.

Or if you don't care about being driven into bankruptcy by a lawsuit, that's also your choice.

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Please turn off the caps lock key.

What sort of business does your corporation do? In what state does it do business? Legal requirements may indeed exist, but we cannot know without knowing these things.

There are also a number of areas in which general liability insurance is required by contract as a matter of custom. For example, general contractors typically require their subcontractors to carry such coverage.

And I agree that you'd likely be very foolish not to carry such coverage.

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