Your business is your livelihood. If something goes wrong and you don’t have business insurance, all you worked for could be lost. To ensure that both your personal and professional assets are protected, it’s important to carry liability insurance. You deserve it, and so does your business!
Types of Business Liability Coverage
Business liability insurance protects your company when lawsuits that may be filed against you and your business for personal injury or property damage. This insurance will provide you legal defense counsel, court fees and if a judgement is awarded against your company, up to the limit selected under your liability policy. Absent this coverage in the event of a claim against your company, your company may not have the resources to defend and pay out of pocket for liability claims against you.
The main types of business liability coverage include:
General liability. This coverage protects your business from bodily injury claims, property damage and advertising claims. For example, if a customer trips and falls in your store or office and injures themselves, they may sue for medical costs, pain and suffering and other consequential losses. General liability pays to defend you and your business and pay legal judgements against you.
Professional liability/Errors & Omissions. If your business is Medicine, Law, Accounting or Engineering, professional liability will protect you and your firm against malpractice type claims. There are many other businesses that are exposed to errors and omissions type claims and don’t realize that general liability will not protect them for such claims. Errors & Omissions coverage specifically provides coverage for these type of claims that general liability does not cover. This coverage is mandatory for some contracts.
Product liability. Perhaps your business sells or manufactures products. What happens if a customer is injured when using the product? Or, what if your product causes property damage to other property? Product liability coverage protects you by paying for damages and legal fees. Some businesses need higher liability limits than others depending on their sales volume and the type of products they make or sell.
Who Needs Liability Insurance?
Nearly every business can benefit from liability insurance. Things can go wrong quickly and innocently, putting your business at risk. By taking out a commercial liability insurance policy, you can expect the following benefits:
Protect your business and personal assetsProtect the reputation of your businessCover litigation, damages and medical costs in the case of a lossPeace of mind knowing you have help if something goes wrong.
What Does Liability Coverage Cost?
Like home or auto, a business liability policy varies based on your business; size, location and risk factors are taken into consideration. For example, a business that installs radon mitigation systems will require more coverage than one that sells scrapbooking materials. A larger business presents a greater risk than a smaller business, which is reflected in the amount of coverage you need as well as the premium costs.
If your business is lower risk, talk to your insurance provider about combining general liability and property insurance into a Business Owners Policy (BOP). BOPs are great for small and mid-sized businesses. They include general liability, business interruption and property insurance, but do not include professional liability, auto insurance or worker’s compensation.
To learn more about liability insurance for your business and how our professional agents at Danskin Agency can help you get the coverage you need, call us today and get a proposal!