As a vital component of Nevada’s economy, small businesses are the backbone of the state’s economic health in both times of recession and expansion. Aside from keeping the state’s retail industry alive and kicking, small businesses are also an important part of Nevada because it accounts for most of the employment opportunities in the area.
What the numbers say
A 2008 report on Nevada’s employment data found that small businesses account for over 95 percent of all state employers. The significant role of small businesses in the state’s economy is further backed by the fact that every small business employer is also responsible for 43 percent of Nevada’s private-sector occupations.
By looking at the facts and data alone, it is clear that small businesses are essential for keeping Nevada and its residents afloat, affording opportunities to live in comfort and security. One vital piece of information to consider, however, is that every small business owner is entrusted with the responsibility to keep their establishment afloat at all times. When a small business closes down, it not only affects the customers but also the employees and their dependents.
An unspoken responsibility
Every owner of a small to medium-sized business that operates in Nevada is imbued with the responsibility to know their rights—especially when it comes to insurance. The Nevada Commercial Liability Insurance plan, in particular, has proven itself as a crucial component for small businesses in need of protection.
Generally sought after as a preventive measure for small businesses in the Nevada area, Nevada Commercial Liability insurance has made it easier to stay afloat in any circumstance. Whether they are facing a legal claim or impending settlement, any issue that poses the threat of financial ruin can be kept under control with the help of a Commercial Liability insurance plan. To better understand what the Nevada Commercial Liability insurance plan can do for you, let’s look at its framework and essential components in greater detail:
Nevada Commercial Liability Insurance Plans
Also known as business liability insurance, commercial liability insurance protects small businesses from financial loss by way of claims of injury or damage caused by you or your employees. A standard Nevada Commercial Liability insurance plan covers the following situations or instances:
- Bodily injury: Bodily injuries include any form of physical injury on a person other than a business owner or employee within your place of business or any injuries that you or an employee may have caused.
- Personal injury: Personal injuries include any type of injury inflicted on the person or image of a customer or competitor. Slander, libel, copyright infringement, plagiarism, wrongful eviction, and false arrest are all prime examples of personal injury.
- Property damage: Property damage refers to any form of damage you or your employee may have done to another person’s property in the course of a transaction or fulfillment of contract.
- Advertising injury: Advertising injury refers to any type of injury or disability in the form of loss of profit or business as a result of your advertising efforts
- Legal defense and judgments: The legal defense and judgments category covers various costs incurred to defend yourself against real and frivolous suits and judgments up to the prescribed limit of your judgment. It is worth noting, however, that a Nevada Commercial Liability insurance plan does not cover punitive damages for negligence or willful misconduct.
While it may not exactly be considered to be a mandatory requirement for operating in Nevada, Commercial Liability insurance is highly recommended as it is a modified comparative negligence fault state.
Nevada’s classification as such essentially means its laws dictate that a plaintiff (essentially anyone filing a case against your business) must prove that your business is at fault. Should it be determined that the plaintiff is 51 percent or higher at fault, there will be no recovery; however, if the plaintiff was proven to be 50 percent or less at fault, then the amount recoverable will be reduced by the percentage of their carelessness. Personal injury cases can be fileable up to two years from the incident, while product cases can be fileable for up to four years, making it essential to have your guard up with insurance at all times.
How much should your Nevada Commercial Liability insurance plan carry?
For the majority of small businesses, a good amount to carry for a Nevada Commercial Liability insurance plan falls right around the $500,000 to $1,000,000 range. Depending on the type of business you operate, what you manufacture, and whether or not you’re running a high-risk business, however, the recommended carrying amount may be higher.
Final words
Regardless of the specific industry that it operates in, any type of small business in Nevada can benefit greatly from a Nevada Commercial Liability insurance plan. Every form of a Nevada Commercial Liability insurance plan option is created to protect small businesses from the imminent, arbitrary, and costly threat of being sued for liability.
Investing in an insurance plan is part of protecting your small business and employees from the threat of financial ruin.
If you’re looking for commercial insurance in Nevada, get in touch with us today to see how we can help!
