Business insurance provides financial protection to help a company cover claims of negligence. It is not uncommon for a business to make a mistake. Having proper coverage minimizes the financial loss your company might suffer. It is an important investment.
Every business needs to take care when marketing its services. Advertising mistakes can be a form of misleading marketing. Customers can file a claim against you if that is the case. Business insurance may help cover these losses.
General Liability Insurance
Every business needs liability insurance. It provides protection against claims made against your company. This basic level of protection is a good start. It usually does provide coverage for false advertising. This includes instances where you make misleading statements about the services you offer.
It is always important to be authentic and clear in all descriptions of products. Do not make promises you cannot back up. You should only provide facts as well. Never oversell your product just to get a sale.
Companies need to educate employees about this legal requirement. Employees must provide accurate information. If an employee does not, the company may be liable under consumer protection laws. Be clear in the training you provide here. Who handles your marketing? Who does sales calls? Educate these individuals as well.
General liability insurance may cover false advertising and marketing mistakes. Every policy has limitations, though. The amount of coverage given to this type of claim will have a limit. Verify this information when selecting a policy.
Expanding Coverage
Business insurance coverage may need to be more comprehensive for some businesses. If a company provides any type of advice, professional liability insurance is beneficial. It extends the liability coverage further. This provides the company with more protection.
Most professional liability policies start at $1 million in coverage. More is often available. This helps extend coverage for claims for advertising mistakes. Larger organizations may benefit here.
Always aim for accuracy. Be sure to provide back up information for any claims made. If you have a concern about any claims or wonder what to say, speak to a business attorney. Marketing mistakes are not uncommon. Most will have a limited outcome or claim. However, a single large-scale instance can be a very expensive and worrisome situation. Buschbach Insurance will work with your business to minimize these risks as soon as possible. It could help protect your company in the long term.
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