Business Liability Insurance

What Is Business Liability Insurance?

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Business liability insurance protects your company’s financial assets when someone makes a legal claim against you. It acts as a protective layer between a lawsuit or third-party claim and your hard-earned wealth. 

As a business owner, your exposure to potential claims and lawsuits is much higher. Customers or clients can get hurt on your premises. Your company may unintentionally create a defective product that results in personal injury or property damage. Employees can act negligently and put someone at risk.

The list of possibilities is nearly endless. To protect your company assets and the future of your business, you must invest in liability coverage.

Why Do Business Owners Need Liability Coverage?

Business owners can sometimes be the target of lawsuits just because they have built a company and amassed some wealth for themselves. The other side of the coin is that running a business inherently comes with greater risks. That’s because your products and services touch the lives of many people, and sometimes those interactions can have negative consequences.

4 Types of Liability Insurance

Liability insurance comes in different flavors. Personal liability insurance is important because it protects you from claims made against you personally. If you cause harm to someone else or damage someone’s property, your personal liability coverage will protect your financial assets and cover the legal claims.

Business insurance can include a variety of policies, including property insurance, worker’s compensation insurance, and general business liability insurance. Your business liability can protect you in case your products or services cause bodily injury or property damage. 

Professional liability insurance is important for lawyers and accountants and anyone else who needs professional indemnity insurance. This type of insurance is used to protect against claims that relate to the professional’s duty of responsibility. 

Public liability coverage is important if your business has public premises customers or clients can visit. The slip-and-fall accident in your warehouse would fall under public liability insurance.

<span style="font-weight: 400;" data-mce-style="font-weight: 400;">What Liability Insurance Covers</span>

What Liability Insurance Covers

Your liability insurance covers 3 principal components: 

  • Bodily injury
  • Property damage
  • Personal injury

Bodily injury refers to someone being physically hurt. It could include medical costs, such as doctor’s visits, prescriptions, and rehab. Property damage refers to someone else’s possession being damaged. If your construction vehicle plows over a parked car, you’d be liable to repair or replace the damaged vehicle. Personal injury is a little more complex. This can include invisible things like emotional damage, lost earnings, or penalties for negligent behavior.

How Much Does Liability Insurance Cost?

Certain businesses may face a higher risk of liability claims than others. The cost of business liability insurance depends on the type of business you run, your locations, the products or services you sell, the number of employees, and other factors. 

Our firm specializes in covering local business just like yours. We can help you create the right liability policy with monthly payment options and tailor your coverage to reduce the costs. Our knowledgeable agents offer worldwide coverage, too. Call us to get started on your quote for business liability insurance.

FAQs about Business Liability Insurance

What Risks Do Business Owners Face?

Business owners are at risk of legal claims for multiple reasons. Visiting your public premises can cause bodily injury or property damage. The products or services you sell may be the reason for a third-party claim. And your staff, negligent or not, may unintentionally harm someone or damage property. 

Why Do I Need Business Liability Insurance?

Business liability insurance is there to protect your financial assets from legal claims. You can’t control if someone sues you for damages, but you can make sure you’re prepared for such an event. Without adequate insurance, you could lose everything you’ve worked so hard to build because of one legal claim. Don’t risk it.

Am I Responsible for Accidents That Occur at My Place of Business?

You should assume the answer is yes. While there are people who intentionally try to hurt themselves on the premises of a local business, hoping they will receive compensation, that’s not the norm. And even then, you’ll still incur legal expenses to prove your case. Liability insurance protects you when someone gets hurt or someone’s property gets damaged at your place of business. 

Protect Your Business with Liability Insurance

Don’t leave your business vulnerable to legal claims. Call our insurance agents today to create a business liability policy that protects your company’s assets. We’ll tailor the policy to your needs and start your coverage right away.

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