Having general liability insurance helps demonstrate your company is responsible and dedicated. When it comes to choosing who to do business with, your clients may require it. It is always a good idea to choose a policy that accurately reflects risks. Having too much does not help. However, the right balance is always important. Here is how to find that balance. 

How Does Insurance Show Your Company Is Responsible? 
If you have a small business, your company may not have a long reputation of providing quality service. Your workmanship may be good. You may have all of the skills necessary. Yet, customers have no real idea of who you are or what you do. They do know that they cannot afford bad results. That is why they seek out a company that has ample protection for them, including general liability insurance. 

Take for example, a homeowner who needs a new roof. That homeowner may ask you if you have insurance. They may ask for proof. They may need this information for several reasons: 

• It may help show that the company has financial protection employees do not do the work properly. 
• It can help them to know the company is legitimate as well. 
• It helps show the business is likely to do a good job (your insurer will not likely maintain your policy long term if you have too many claims). 

For all of these reasons, your customer is likely to need insight into the amount and type of business insurance you have. A good component of this is general liability insurance. 

What If You Do Not Have Enough? 
Demonstrating responsibility means having enough coverage. If you do not have more than a basic level of protection, and your employees cause excessive damage, that could mean your customer is at risk.  

That is why many consumers educate themselves about what the normal amount of coverage should be. They also know the type of coverage you should have. This is more likely to be true when you are placing bids on projects for large corporations and brands, or government agencies. 

What should you do right now to ensure you can communicate this? Turn to your business insurance agent. Get a comprehensive plan in place to minimize your risks. Show your customers and potential customers that you are a responsible business owner managing financials properly.