Business Liability Insurance
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Explore and learn more about some unique risks as well as the related insurance solutions
Possible Liability: In case your business cannot operate due to unforeseen circumstances, for example, a fire or pipe leak, or anything that causes the company to halt operations.
Solution: Adding coverage for business income insurance can protect against potential financial losses.
Commercial General Liability
Possible Liability: Claims due to accidents for property damage, bodily harm, personal injury.
Solution: General Liability is necessary to save businesses from financial loss, lawsuits, claims, or damages due to non-professional negligent acts by your services, company operations, or your workers.
Workers Compensation and State Disability
Possible Liability: Almost all states require employers to cover for any employee work-related injuries.
Solution: State disability and workers compensation helps companies avoid fines and be able to give benefits to eligible workers.
Possible Liability: Workers that might sue their bosses for what they feel to be unequal/unfair treatment.
Solution: Employment Practice Liability Insurance comes typically as a separate policy and can cover the company and higher executives or officers from supposed employment issues.
Possible Liability: Risk of customer’s financial info getting lost, stolen, or endangered can turn into a legal responsibility for a business to communicate about any such breach and even pay for economic damages.
Solution: Adding a cyber liability policy can assist with the fees and losses in the aftermath of a cyberattack.
Commercial Umbrella/ Excess Insurance
Possible Liability: If your company is found liable for loss that exceeds limits of a standard policy.
Solution: Adding a commercial umbrella policy can accommodate extended limits from $2,000,000 and $10,000,000 over general liability workers comp, commercial auto and directors and officers liability insurance.
Commercial Auto Insurance
Possible Liability: Accidents involving vehicles owned or leased by the company causing physical harm or property damage to others as well as rendering the cars unusable.
Solution: Business Auto policy for leased or owned vehicles that can also include comprehensive and collision coverage.
Possible Liability: Possible environmental damage caused by your business.
Solution: Environmental insurance protects the company in the case of an accident or catastrophe caused by the company’s actions.
Directors and Offices
Possible Liability: Any member of the company’s upper management or board members might be held accountable and sued for negligence.
Solution: A comprehensive directors and officers liability insurance can cover for these individuals in case of a lawsuit or settlement.
Possible Liability: Equipment vital to the business might crash due to a power surge or mechanical malfunction.
Solution: Adding a systems breakdown insurance can guard your business against financial losses due to the suspension of operations.
Business Owners Policy
Possible Liability: As a small and medium-sized business owner, you might not be able to afford or require as many inclusions to a policy.
Solution: BOP is a custom-made policy that can protect your assets, employees, your business, and other details you may want to set up. It would be best to discuss this further with your agent.
Errors & Omission
Possible Liability: Sometimes, a simple clerical error, non-provision, or missing information in a service or product offered by a business can cause lawsuits.
Solution: Professional Liability Insurance can be added as a security measure in cases where negligent acts, errors, or omissions transpiring during company activities, and which potentially result in a financial loss for the client.
Crime and Fidelity
Possible Liability: In the event that an employee is found guilty of dishonesty or work-related crime.
Solution: Ensure coverage for employee theft, vandalism, forgery, dishonesty, etc. You can review the details with your agent.
DISCLAIMER: Consult actual policy for exact terms and conditions or talk to your insurance agent for clarifications.
As a business owner, every transaction you complete can result in either a profit or a risk.
Protecting your business from the impact of potential customer lawsuits should be the first order of business. And while only a precisely crafted liability insurance policy can shield your business from this expense and stress, it’s usually the last thing business owners handle.
What Is Business Liability Insurance?
Business liability insurance safeguards the financial interests of companies and business owners in case they face formal lawsuits or any third-party claims. These insurance policies will cover any direct financial liabilities and also legal defense costs. The 3 kinds of business liability insurance are:
- General liability insurance
- Professional liability insurance
- Product liability insurance
- Business liability insurance safeguards the financial interests of companies and business owners.
- Different kinds of liability insurance include general liability insurance, professional liability insurance, and product liability insurance.
- This kind of insurance safeguards the financial interests of business owners from penalties they may incur against them and this will also cover the legal defense costs.
- The cost of the insurance coverage is decided by the kind of business being insured and also its location such as companies situated in flood-prone regions that are likely to pay more.
What does business liability cover?
Liability insurance covers the costs of legal fees, including court costs and the resulting award, if any is made. Imagine the peace of mind you’d have been free from worry about the attorney costs as the liability case grinds on—and if you’ve got something to take, the plaintiff’s attorneys will often make sure it does.
Liability insurance is appropriate for any business that could face potential lawsuits. There are four distinct types that you may need, depending on your business, and your tolerance for risk of financial loss:
- Personal Liability
- Business Liability
- Professional Liability
- Public Liability
There are other risks that may be covered, including:
- Bodily injury should a client trip and fall over your briefcase, or lose footing on a slippery floor, and you are found legally liable for their injury.
- Property damage and data loss should you accidentally spill coffee on a client’s server that causes data loss, or a tree falls on their car in your parking lot.
- Personal injury should an employee talk to a fellow employee of the shop about one of your clients in a false and unflattering way. The client learns of this discussion and sues for slander. We will cover the subsequent claim, up to your General Liability policy’s limits of liability, and pay for an attorney to defend you if necessary.
What General Liability Insurance doesn’t protect
General liability insurance is not designed to protect you from everything, to help keep costs down. For example, general liability does not cover you against claims of negligence, even if it isn’t you or your business’ fault. This is because not every business needs that variety of protection, so to make it part of the policy would over insure lots of businesses, and make the coverage needlessly expensive.
You should consider general liability insurance coverage, also called commercial general liability insurance, if either you or your employees:
- Interact with clients face to face. If you make sales calls or visit clients at their place of business, their home, or they visit your location
- Have access to equipment that’s not yours. Business liability is ideal for IT professionals, electricians, and other repair or technical services.
Represent your client’s business to other companies.
- Use third-party locations for any business-related activities. Business liability can cover architects, designers, wedding planners, etc.
- If you are required to maintain general liability insurance as part of a contract.
Understanding Business Liability Insurance
It is known that small business owners put out their personal finances at risk in case there is a business-related lawsuit. Their partnerships and sole proprietorships are at risk since they could be withheld with huge expenses thus they need this kind of insurance coverage. Furthermore, an owner may still be exposed to personal risk even though they are under the structure of a limited liability corporation.
Business liability insurance safeguards the assets of a company and business and also pays for legal obligations such as medical expenses incurred by a customer who happens to get hurt on store properties. This also included any on the job injuries sustained by any of your employees.
In addition, liability insurance will also cover the expenses of a company’s legal defense and also while paying for any settlement offerings or awards a company is needed to pay according to the jury. These expenses may include compensatory damages, non-monetary losses suffered by the injured party, and punitive damages.
Furthermore, for businesses that rent the commercial real estate property in which they operate, this kind of insurance will safeguard you against liability from damage you may suffer due to fire, mold, floods, or other physical catastrophes.
Lastly, business liability insurance will also cover claims of false or misleading advertising, including libel, slander, and copyright infringement.
Is general liability insurance required by law?
No. However, failing to get general liability insurance could lead you to pay for all the expenses related to a claim against your business. One example is when a client slips on a rug and breaks their hip while visiting your office. Without this kind of insurance, you could be held liable for all the medical fees and legal fees both you and your client may face. This should be, of course, a priority for your business.
Does general liability insurance have a deductible?
Yes. You may choose the amount of your general liability deductible when you ask for a quote. A deductible is a fixed out of the pocket expense you agree to pay before your insurance coverage starts to pay for you.
Does general liability insurance cover theft?
Unfortunately, no. This won’t cover for theft or damage. General liability insurance will only pay for third-party damages, not yours. The person considered as the “third-party” is the one that has a claim against you.
Worried about the cost?
Our firm specializes in covering professional services, and local businesses like yours. We have everything you need right here, including:
- Monthly payment options to help spread out your payments so you can better manage your cash flow
- Coverage of temporary staff, full-time employees, and independent contractors
- Past work covering unforeseen claims arising from work completed before you were even insured, to a pre-agreed date
- Worldwide coverage as long as the claim is filed in the U.S., one of its territories or Canada
- Claims responsiveness when time is of the essence, especially in the event of an insurance claim
- Tailored coverage for the specific risks of your field and industry
- Knowledgeable agents who provide exceptional, passionate service
- Coverage for contracts satisfying most standard contract insurance requirements
- Fast and simple online quotes, or helpful agents, immediate coverage.
Why We’re Different
You may think you want the cheapest insurance you can find, but realize you may not be getting everything you bargained for…
While most insurance products are similar in price and function, insurance providers are very different when it comes to structuring a policy that actually covers you.
There’s no such thing as a one-size-fits-all insurance policy when it comes to your business.
We’re your neighbors. We protect businesses and people we know and care about, and that means we always look for ways to protect you better, including carefully choosing the insurance companies we represent to be both affordable and responsive.
Contact us and let the professionals at our company help you forge the strongest shield possible to help you protect the things you are working hard to build.
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