Why your business needs liability insurance
Liability insurance is a necessary business tool to protect your company and yourself in case of legal action. While liability insurance doesn't protect you against lawsuits that pertain to damages you have been determined to have caused intentionally, it's a necessary element of your business plan when you intend on having customers on your property, dealing with your products or contracting your services.
There are several different types of liability insurance available, and you should take the time to purchase the types that are most relevant to your particular business. Some general liability insurance policies won't cover service professionals, while others don't cover the expenses involved in property lawsuits. Before you purchase a liability insurance policy, make sure that you're covered for all the possible legal actions that could result from your business. Liability insurance is an important tool to help you protect your investment.
Where most general liability insurance policies will cover costs associated with physical or property damage, negligence claims involve different types of transactions and can often result in much more costly legal proceedings.
Public and Professional Liability Insurance
Public liability insurance covers the insured against damage or negligence claims in civil matters; it protects people who are deemed responsible for the care or safety of others, such as homeowners or landowners. If someone is injured or suffers a loss on your property, public liability insurance can shield you from some of the legal costs, depending on the situation.
Generally, this type of insurance isn't held by business owners or operators, and if it is, it's purchased in combination with specific business-related insurance policies. Professional liability insurance, on the other hand, is used to protect people in the service industry, from architects and home inspectors to doctors and accountants, when there are claims of negligence levied against them.
Commercial General Liability Insurance
Commercial general liability insurance allows business owners and operators to protect their company in the case of legal proceedings. An extension of general liability insurance and public liability insurance, commercial general liability insurance is specifically business-related, and will cover your costs when a customer, client or supplier suffers injury or loss at your place of business or due to the actions of an employee at a worksite.