Business Liability Insurance UT Policy Information
Business Liability Insurance UT. The Small Business Administration identifies three types of business liability insurance for the average small business. These include general business liability insurance, product liability insurance and professional liability insurance. Each of these have their own purpose and, depending on your business type, may or may not be of benefit to you. Of greatest benefit to almost all businesses is a general business liability insurance UT policy. This policy acts as the first line of defense against many liability claims against your business.
General business liability insurance UT comes into play if a claim is made against your business by a third party. This could be for an incident such as property damage or bodily injury as a result of an action of an employee or contractor. The general business liability insurance usually covers legal fees in defense of the company and has a maximum settlement or court award value that the insurance will cover. Though not required by Utah law, most Utah businesses choose to protect themselves from financial loss and maintain a general business liability insurance policy. A typical policy may include bodily injury and property damage, personal injury liability and legal defense and judgement.
Business liablity insurance UT protects your company from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.
Currently, the Pacific Research Institute ranks Utah among the worst states when considering the legal climate for business liability. A state constitutional ban exists barring the legislature from setting certain limits in business liability lawsuits, leaving businesses open to financial ruin. It is advisable for all Utah businesses to strongly consider commercial general liability insurance. It is your first line of defense against frivolous and legitimate claims and lawsuits.
Bodily Injury and Property Damage
The bodily injury and property damage liability portion of the general business liability insurance UT policy generally covers physical injury to a person other than an employee at your place of business.
It also covers physical injury caused by you or your employee in the course of business on another person's property. Medical payments for such injury are often part of the settlement. Also the coverage includes damage caused by you or an employee to another person or entity's property.
Libel, Slander and Copyright Infringement
The general business liability insurance UT policy also includes coverage for libel, slander and copyright infringement by employees acting on behalf of the business. It also covers the invasion of property or privacy and wrongful eviction and losses caused by your advertising. These instances involve damage that is alleged to be caused by you or an employee against an individual or another.
Legal Defense and Judgements
Lastly, the typical business liability insurance UT coverage provides protection for legal defense and judgement which generally includes costs of defense against lawsuits and judgement limited to coverage liabilities. This part of the policy can be invaluable when settling lawsuits. Legal representation to handle the matter provides a sense of security in dealing with these matters.
Why You Need Business Liability Insurance UT
The business liability insurance UT can help protect businesses by covering legal claims. Policies can be tailored to meet the specific needs of the business by adjusting coverage amounts, deductibles and varying the dollar limits of the coverage. By adjusting deductibles and coverage amounts you will find a policy to meet your needs while staying within your budget.
Each claim can result in a devastating financial cost to a small business. Customer slip and fall claims have the highest rate of occurrence in business liability. Some estimates have the average payout for these types of claims at well over $30,000. These happen more often than you can imagine. The injured party generally has to show that the business was negligent, but sometimes that is not the case. An employee mops the floor and forgets to put the "wet floor" sign up and a customer slips and gets injured. Another example is a customer tripping over a sidewalk crack outside the business.
One such slip and fall accident in Utah resulted in a $250,000 pre-trial settlement to the claimant for an injury in small grocery store. The individual walked down the aisle of the store and slipped on some spilled liquid laundry detergent. This resulted in a significant injury to the claimant, requiring medical attention and loss of work.
Ranked next is a customer injury and damage claim which often costs the business in excess of $40,000. Very similar to slip and fall, the customer has been injured through an act either through an action or through negligence. Recently in Utah, a female was awarded $300,000 after she was injured during a robbery. It was determined that the business was negligent in the provision of security in a high crime area and that they were liable for the customer's injuries.
Reputational harm claims are also among the most frequent business liability insurance claims in Utah with an average settlement of $50,000. In this internet age, reputational harm cases are on the rise. The unauthorized use of a picture that can negatively impact a person or business reputation is an example of this. A negative, hostile online reaction by an employee to a review or blog could be another example. In cases where a lawsuit is filed, the average can run up to $100,000 with legal fees and court costs. In Utah, jury awards can be even higher due to the legal atmosphere. Though most defamation cases have historically centered on the media, claims against employers have been made with significant awards made to former employees. Former employees proving that employers make false statements that negatively impact their earning potential are among these cases.
Choosing the Best Policy for Small Business Needs
Insurance rates can be highly competitive and vary by area, coverage type, deductibles, limits and other variables. This is true for general business liability insurance UT. In addition to providing you the best coverage, a commercial insurance professional work with you to understand your business needs and develop a plan to manage your unique risks.
Utah Economic Data, Regulations & Limits On Commercial Insurance
If you are an entrepreneur who has your sights setting on opening up a business in the state of Utah or you are thinking about expanding your operation to the Beehive State, making sure that it offers a climate and demographic that will support your industry is vital to your overall success. If the state does not offer a positive business climate or demographics that will benefit from the products and/or services that you offer, there's a good chance your business could fail.
By assessing the employment rate as well as the key industries that are thriving in UT you will be able to determine if it is an ideal location for your enterprise. Additionally, knowing what type of commercial insurance coverage you'll need is important so you can make sure you are properly protected and set yourself up for success.
Economic Trends For Utah Business Owners
As of January, 2021, Utah has one of the strongest labor markets in the country. At this time, the unemployment rate was registered at 3.1 percent, which is lower than the national average of 3.6 percent. The unemployment rate to continue holding steady or drop even further, as more job opportunities are projected to become available.
Both large urban and small urban areas offer good opportunities for business owners. In a report that was issued at the end of 2018, six Utah cities were included on the list of top cities to start a business in the United States. These cities include:
- St George
Salt Lake City, the state's capital, and the surrounding areas also offer opportunities for business owners who are interested in starting a business in Utah.
The top industries that are poised to see the most growth in Utah over the course of the next few years include:
- Aerospace and defense
- Information technology
- Leisure and hospitality
- Petroleum production
If you are considering going into business in UT, having an operation in any of these industries will likely afford you success.
Commercial Insurance Regulations In Utah
The Utah Insurance Department regulates commercial insurance in the Beehive State. Business owners are required to invest in commercial insurance coverage, as it safeguards their interests, as well as the interest of all that are involved in the company, including employees, clients, and vendors.
Just like any other state in the country, there are specific types of commercial insurance coverage that business owners need to carry in UT. These coverages include:
- Workers Compensation Insurance: Pays for medical expenses and lost wages should an employee sustain a work-related injury or illness.
- Commercial Auto Insurance: For vehicles over a certain weight, covers any damages if a vehicle that is used for work-related purposes is involved in an accident.
Additional Resources For Small Business Insurance
Protect your company and employees with the right commercial insurance policies. Read informative articles on small business insurance coverages - and how they can help shield your company from legal liabilities.
- Small Business
- Business General Liability
- Business Interruption
- Business Liability
- Business Owners Policy (BOP)
- Certificate of Insurance
- Commercial Auto
- Commercial Crime
- Commercial Package Policy
- Commercial Umbrella
- Comprehensive General Liability
- Directors and Officers Liability
- Cyber Liability
- Employment Practices Liability
- Event Cancellation
- Fiduciary Liability
- General Liability
- Home Based Business
- Independent Contractor
- Liability Insurance Certificate
- Liability Insurance
- Ocean Marine
- Professional Liability
Your small business faces many potential disasters including: fire, floods, theft, equipment breakdown, lawsuits from clients or customers and current & former employees. Any many other risks you haven't even thought about.
A small business commercial insurance program should provide protection for both larger and smaller disasters. The obvious things like fire, flood and theft most business owners think about... but what if a hacker infects your computers with a virus - and files containing private customer information like credit card and Social Security numbers are stolen?
Who is going to pay to fix your customers credit rating etc...? Will your insurance pay for the cost? You need to know that.
Your commercial insurance program should cover events that can close down your company, or cause it to lose revenue. Anything less than that is not enough coverage. Commmercial insurance doesn't cover everything, and all policies have exclusions and limits.
You need a written plan that allows you to get your operations back up and running as quick as possible.
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Also find Utah insurance agents & brokers and learn about Utah small business insurance requirements for general liability, business property, commercial auto & workers compensation including UT business insurance costs. Call us (801) 704-1677.