Starting a Business

Do I need business liability insurance or can I have people sign a liability disclaimer?

min read
Opinions expressed by Entrepreneur contributors are their own.
With few exceptions, there is no requirement in the law that you must have insurance to cover your business activities. On the other hand, for most businesses, you would be foolhardy to go into business without it.

Liability disclaimers and waivers are not always iron-clad. In addition, under some states' laws, you cannot ask someone else to waive your liability. So that you don't get caught short in either of those two scenarios, it's strongly advisable to have insurance in place to cover those kinds of claims -- in addition to the waiver.

Another benefit of the insurance is that some policies will also cover the defense costs...which could otherwise drain your operating cash.

More from Entrepreneur

Jason's expertise and experience can help you with storytelling, motivation, and pitching your business to media.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Starting, buying, or growing your small business shouldn’t be hard. Guidant Financial works to make financing easy for current and aspiring small business owners by providing custom funding solutions, financing education, and more.

Latest on Entrepreneur