Liability Insurance for Business Owners:

The type of liability insurance you will need will depend on the type of business you are currently running. Many businesses can get by with a simple general liability policy, but if your needs are different, you cannot rely on a general policy to meet all of your needs. Every business needs liability insurance, but it is important to select the right liability insurance for your business needs.

General Liability Coverage

This policy will normally provide you with liability coverage for your customers, employees, delivery persons, suppliers and visitors. For example, if a customer were to slip and fall in your business and pursue a claim against you for their injury, this policy would provide you with coverage.

A general liability coverage policy will typically contain exclusions, which means that it is definitely not a "one size fits all" policy for many business owners. It is very important to understand all of the exclusions before purchasing a policy to ensure that a vital area of your business is not excluded from coverage.

Product Liability

If you manufacture a product that is used by consumers, you will need to have a product liability policy. This policy will protect you from claims made by consumers, such as misuse of a product or an injury resulting from the use of a product. This not a license to turn out faulty products, but a way to protect your business from customer claims.

Professional Liability

This may also be referred to as an Errors and Omissions policy. In the medical field, it would be called malpractice insurance. Basically, a professional liability policy will protect your business from claims based on company negligence that resulted in injury to another. Professionals such as lawyers, accountants, insurance agents, architects or consultants should purchase this type of liability coverage.

Employment Practices Liability

With the increase of claims regarding sexual harassment, wrongful termination and discrimination, this type of insurance was introduced. It will protect an employer should an employee lodge a claim based on the above criteria. This type of coverage is geared towards larger companies, but even smaller companies can still benefit from this type of liability policy.

Umbrella Policy

If you are concerned about exceeding your liability insurance limits, an umbrella policy can provide additional coverage for your business. This type of insurance will help assist you with any additional judgments or if a judgment exceeds $500,000.

As you can see, your options are quite varied when it comes to liability insurance. If you are unsure of what you may need, it is a good idea to discuss your options with your business insurance representative. They will be able to help you in your decision making process to ensure that your business is ready for whatever may come.

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