Bigger firms may have more opportunities for expensive claims to arise, but they often have the ability to handle any expenditures in excess of their coverage. Small businesses, on the other hand, deal with fewer people and have the perception of having a lower chance of getting hit with a liability claim. However, they typically cannot afford to pay damages that exceed their liability limits associated with their small business insurance, giving large claims the ability to financially cripple them.

Imagine this scenario: a customer brings in a car for repair that requires your mechanic to test drive the car in order to diagnose the problem. Unfortunately, the mechanic gets into an accident, resulting in damage to the customer's car as well as another vehicle. Does your business insurance policy have you covered? Often, the answer is, "No."