What is Business Liability Insurance?
There are many benefits to owning your own business like being your own boss, making all the decisions, and watching your business succeed. Unfortunately, having your own business means that you and your business are subject to risks and liabilities. In order to be adequately protected, you need to choose the right kind of business insurance.
General liability insurance, also known as Commercial General Liability insurance, is the most basic type of business liability insurance. It covers claims of physical injury (including libel and slander), bodily injury, and advertising injury. Property damage is also covered under this type of business insurance. Your business is also protected against occurrences on your business premises or covered premises. In addition to covering these areas, commercial liability policies covers legal costs, such as expenses incurred to defend or settle claims, whether fraudulent or not. General liability insurance may be supplemented with other types of insurance such as Errors and Omissions, depending on the needs of your business.
Business liability insurance includes personal and advertising injury, employment practices liability, medical expenses, defense costs, automatic additional insured, premises and operations liability and tenant’s liability. For example, if the place you rent for business is damaged due to a fire, tenant’s liability insurance provides coverage. If someone is physically injured while on your property and is in need of medical care, medical expenses business insurance will provide coverage for the health care costs incurred.
Why You Need It
Every small business benefits from business liability insurance. Commercial general liability insurance protects you if an employee was injured on a client’s premises. Even if you are operating your small business in the safest manner possible, assuming very little risk, and provide no overt reason for someone to sue you, you still need liability coverage.
As a business owner, you have a responsibility to your customers, your employees and to yourself. You’re also responsible for any adverse situations that may happen when people use your product or service, and are on your premises. Successful small business owners understand this, and make sure they are covered with business liability insurance.
