You know what liability insurance is and why it’s important, but before you run out and buy a policy take some time to learn the different types of liability insurance to ensure that you are getting exactly what you need. Having the proper liability insurance will reduce the risk of an unintended event having an overwhelmingly negative impact on your business and its operation.
General Liability Insurance
General liability insurance covers any legal hassles due to accident, injuries, and claims of negligence. It’s your basic insurance and every company should consider it as it protects you and your employees in case you ever have to defend a claim in court. Most general liability policies will cover payments resulting from:
- Bodily injury
- Property damage
- Medical expenses
- Settlement bonds or judgements
Product Liability Insurance
If your company manufactures or distributes a retail project, you may want to consider product liability insurance. This policy protects you against financial losses as a result of a defective product that causes injury or death. Your policy amount will vary depending on the type of product you produce. A clothing store wouldn’t need as much insurance as say, a small appliance store.
Home Business Insurance
Your homeowner’s insurance probably doesn’t cover any home-business legal losses. Home business insurance can cover normal business risks such as property damage.
Professional Liability Insurance
Also known as errors and omissions insurance, this policy is important for business owners that provide a service to customers (ex. Accountant, real estate, lawyer, etc.). Professional liability insurance protects you and your business from:
- Breach of contract
- Inaccurate advice or information
- Typographical errors
- Incorrect appraisals
- Malpractice claims
Directors & Officers Liability
If your company is facing a lawsuit, your board of directors or officers may also come under fire. Directors & officer’s liability insurance extends protection to your board members and officers during legal dealings.
Property insurance covers everything that related to the loss and/or damage of company property. Things like fire, smoke, wind, and vandalism would all be covered under your property insurance. There are two basic types of property insurance, all-risk and peril-specific.
All-risk policies cast a wide net and cover many different incidents except those noted in the policy. These policies are meant to cover the risks faced by the average small business.
Peril-specific policies focus on specific incidents that are listed in the policy. Companies should consider peril-specific policies if there is a high risk of a particular incident due to the nature or location of your business.
Did you know? Liability Insurance Edition
- $100,000,000 may seem like a large policy limit, but in today’s litigious society many small businesses are opting for these once unreasonable limits.
- Generally, liability policies now cover personal injuries such as libel or slander. Check your policy to see if these are included.
- Under certain conditions, your business may be held responsible for bodily injury claims even from trespassers.
- You may be found legally liable for damages even in cases where you used reasonable care.
- Your liability insurance will not only cover any lawyer fees, but it will also handle any settlements that present themselves.
Ready to Get Started?
Not every type of liability insurance will apply to your business. To make sure you are getting the right types and amounts of coverage for your business, contact an expert at Capital Insurance Brokers. Our team is always ready to help!