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Liability Insurance Policy Information

Liability Insurance

Liability Insurance. In some situations, a person or business may unwillingly cause a person or party to be injured or damaged. If the affected person claims the damage, the individual or organization may undergo financial loss.

For example, a mail carrier may slip on your icy driveway and get injured. He can sue you for pain, suffering, medical expenses and lost income. A customer gets sick from using one of your products and takes your business to court. You accidentally injure someone while driving and wind up in court, paying substantial legal bills.

No one is immune from such occurrences. Without adequate liability insurance coverage, they can cause devastating effects to your business or career.

Liability insurance protects your company from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked liability insurance questions:


What Is Liability Insurance?

Liability insurance is a type of insurance policy that provides coverage to individuals and businesses in the event that they are held liable for damages caused to another person or property. The coverage can be for bodily injury, property damage, personal injury, or a combination of these. This type of insurance protects the policyholder from financial losses that may result from a legal lawsuit or compensation claim made against them.

For individuals, liability insurance is often included in home insurance policies or may be purchased as an individual policy. For businesses, liability insurance is a must-have to protect against potential lawsuits from customers, employees, or other third parties. This type of insurance covers the cost of defending a lawsuit, as well as any damages or settlements awarded to the plaintiff.

Liability insurance is crucial for individuals and businesses as it provides peace of mind in the event of an accident or loss. Without liability insurance, the policyholder would have to bear the financial burden of paying for damages and legal fees out of pocket. This can result in significant financial loss and potentially ruin the policyholder's financial stability.

In conclusion, liability insurance is a type of insurance policy that provides protection against financial losses that may result from a legal lawsuit or compensation claim made against the policyholder. It is essential for individuals and businesses to have liability insurance to mitigate the risk of financial loss and ensure financial stability in the event of an accident or loss.

How Much Does Liability Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 Liability Insurance policy for small businesses ranges from $27 to $59 per month based on location, size, payroll, sales and experience.

What Are The Main Types Of Liability Insurance?

With court awards and legal fees getting more and more expensive, it is vital for everyone to get liability coverage from a trusted liability insurance provider. The insurer's duty is to defend you and cover legitimate claims posed against you up to a certain limit.

All costs including your defense costs and the cost of settling claims are covered, and this provides you with invaluable peace of mind.

Liability insurance protects you against loss if your actions, negligence, or a condition of your property causes injury or death to a person or property belonging to another person is damaged or destroyed. Without liability insurance, you would be on your own if you are found legally responsible for any number of reasons.

Below are the some main types of liability insurance that businesses and professionals should consider.

Why Do Businesses Need Liability Insurance?

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Workers Compensation Insurance

According to law, employers in are responsible for the safety of their employees whenever they are at work. An employee may get injured while they work, or a former employee becomes ill due to the work they did while on your employment.

Such employees may sue you or your organization and claim compensation if they believe that you are responsible.

Employers' liability insurance ensures that you are protected from financial loss due to such claims. However, if your employee gets injured due to a motor accident, you may be covered by your motor insurance against any compensation claims.

Employee liability insurance is compulsory in most states for any employees of a business that are not owners, and you can be fined for not having a current insurance policy that complies with state laws.

General Liability Insurance

Public liability insurance covers an individual, business, a contractor or even a community building from any costs of legal action if they are found responsible for injury or death of a person, or loss or damage of property.

It covers you from claims made by members of the public or other businesses against you, but your employees can't sue you. Unlike employers' liability, public liability insurance is not compulsory in most cases.

Nevertheless, businesses in all industries are recommended to have a public liability cover if there is a likelihood of being sued for negligence.

In some cases, it is mandatory. For example, licensing authorities may require a business to have it to hold public events. This type of cover does not help you if you are involved in known criminal actions or hazardous activities.

The popularity of public liability insurance is increasing, and it may be included in insurance policies. If you find out that you are covered for public liability in other insurance products, ensure that the amount you are covered is enough.

Product Liability Insurance

According to government statistics, defective and dangerous products cause thousands of injuries annually in the United States. Responsibility for such injury may be distributed among all people who are involved in the product chain.

Parties exposed to product liability claims include the manufacturer, importer or distributor, the party who assembles and installs the products, the wholesaler and the retail store from which the customer got the product.

If you manufacture, import, sell or distribute products in, you should have product liability cover from your liability insurance company of choice. It covers you for any damage or injury that may be caused by the use of your products.

People who believe that they have been harmed by your product can sue you without having to prove that you were negligent or had the intention to cause harm.

Product liability insurance may also cover for claims made by a customer if they are harmed by the lack of adequate instruction on the use of a product. These claims might even be due to failure to warn on your product label. Therefore, this type of insurance is vital to any business that manufactures or distributes products.

Professional Liability

Regardless of how many years of experience you or your firm may have, there is a possibility that one day you or one person in your team will make a mistake. It might be professional negligence, loss of data, unintentional breach of confidentiality or defamation.

Professional liability (also know as errors and omissions (E&O) and malpractice) are designed to protect professionals such as doctors, lawyers, chartered accountants, architects, etc. from legal liabilities to pay for any damage caused by their negligence as they perform their professional duties.

Someone may sue you if he/she suffers a loss after applying your professional advice or receiving your service. Different types of professional indemnities are designed for different professions. For instance, the medical profession has medical insurance indemnity as a requirement for professional registration or licensing.

With respect to industry bodies regulatory requirements, professional indemnity liability insurance is mandatory especially for professionals such as accountancy, surveying, engineering to name but a few. Also, professionals working on contract terms such as IT consultants, business and management consultants will certainly need professional liability insurance to get a contract.

However, large or small a professional business is, without PI insurance the business is left vulnerable to financial and reputation compromise.

What Does Business Liability Insurance Cover & Pay For?

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Following are some examples of business liability insurance claims and what insurance can cover:

1. Slip and Fall Accidents: A customer slips on a wet floor in your store and suffers an injury. The customer decides to file a lawsuit against your business for medical expenses and lost wages. Liability insurance can help cover the legal costs, including attorney fees and any settlement or judgment awarded to the plaintiff.

2. Product Liability: Your company manufactures a product that causes harm to a consumer due to a defect in its design or manufacturing process. The injured party files a lawsuit against your business for damages. Liability insurance can help cover the cost of defending the claim, as well as any potential settlements or judgments that may be awarded.

3. Professional Negligence: Your business provides professional services, such as consulting or financial advice, and a client claims that your negligence led to financial loss or other damages. The client files a lawsuit seeking compensation. Liability insurance can help cover the costs of defending the claim and any settlements or judgments that may be awarded to the client.

4. Defamation: A competitor accuses your business of making false or damaging statements about their company, resulting in lost revenue or a damaged reputation. The competitor decides to file a defamation lawsuit against your business. Liability insurance can help cover the legal costs, such as attorney fees, and any settlement or judgment awarded to the plaintiff.

5. Advertising Injury: Your business runs an advertising campaign that inadvertently infringes on someone else's copyright, trademark, or other intellectual property rights. The aggrieved party files a lawsuit against your company. Liability insurance can help cover the costs associated with defending the claim, including attorney fees, and any settlements or judgments awarded to the plaintiff.

Small Business Insurance By Industry And/Or Type

Select the general industry or small business insurance type link below to find more detailed information on coverage, costs, exclusions and more:


Advertising, Marketing and Media

Learn about media liability insurance - a specialized form of professional liability insurance policy that provides protection for legal claims brought by third parties.


Agribusiness

Learn about small business agribusiness insurance - a type of commercial insurance protects farmers against loss of, or damage to crops or livestock.


Arts and Recreation

Read up on small business arts and recreation insurance.


Auto Sales, Service And Repair

Read about auto sales, service & repair insurance, which provides protection for damages done to customers vehicle's and other property as well as injuries resulting from the work done.


Aviation

Learn about aircraft and aviation liability insurance - a specialized form insurance that provides coverage for hull losses as well as liability for passenger injuries, environmental damage and third-party damage caused by aircraft accidents.


Bonds

Learn about surety and fidelity bonds which are types of insurance that are used to protect against damage or loss in commercial transactions.


Children And Pets

Discover what business insurance policies cover for children and pet related small businesses.


Commercial Property

Read up on commercial property insurance coverage, including how business property insurance protects your company's building's and/or their contents from damage, destruction, theft and vandalism.


Construction Contractors

Learn about construction contractors insurance, including how much the premium costs and what is covered - and how liability insurance can help protect your construction business from lawsuits.


Contractors And Home Improvement

Learn about contractor's insurance, including what it covers, how much it costs - and how business insurance can help protect your small business from lawsuits.


Education, Colleges, Universities And Schools

Learn about insurance for educators that helps protecting your professional reputation and other legal liabilities arising from your educational services.


Financial Institutions

Discover the types of commercial insurance that banks, finance companies and other financial institutions need to protect their asset management, deposit, lending, investment and other operations.


Food And Drink

Learn about restaurants, bars, liquor stores insurance coverages. See how food service insurance help protect against accidents, oversights and lawsuits resulting from business operations.


Health And Beauty

Learn about small business health and beauty insurance coverages that help protect tattoo artists, salons, spas, estheticians, cosmetologists, barbers, hairdressers, nail salons and more from legal liability.


Information Technology And Internet

Learn about IT technology insurance policies that help protect IT businesses, consultants & subcontractors from the unique risks that small tech businesses face when they work.


Local, State And Federal Government

Discover what types of commercial insurance government entities need.

Lodging Places

Find out what types of business insurance that hotels, motels and other lodging places should have to protect their varied operations.

Manufacturing

Learn all about manufacturing insurance. Manufacturers face many unique risks such as product liability and/or product recall exposures due to the nature of their business operations.


Marine, Boat And Watercraft

Learn about marine, boat and watercraft insurance - a specialized form insurance that provides coverage for hull losses, cargo losses as well as liability for passenger injuries, environmental damage, and third-party damage caused by watercraft accidents.


Medical And Dental

Discover small business insurance for medical and dental professionals. Medical malpractice insurance is a type of professional liability policy that protects health care professionals from liability causing in bodily injury, medical expenses and property damage.


Miscellaneous

Find informative articles on miscellaneous businesses including the types of insurance policies and coverage they need, costs and other considerations.


Non-Profit

Find useful articles on business insurance for non-profit 501(c)(3) organizations, charities and associations.


Professional Services

Get informed about professional services insurance, including Professional liability, aka errors and omissions (E&O insurance), that protects your small business against claims that a professional service you provided caused your client financial loss.


Real Estate

Learn about real estate insurance coverages including liability and commercial property policies for realtors, mortgage companies and more.


Retail

Read valuable retail insurance policy information. In a retail business, you need to have the right type of business insurance coverage so that your store, employees, and inventory are protected.


Small Business Commercial Auto

Learn about commercial auto insurance which includes liability and physical damage protection for vehicles that are used for business purposes.


Small Business Insurance

Protect your company and employees with insurance coverage. Read informative articles on small business insurance policies - and how they can help shield your company from legal liabilities.


Sports And Fitness

Learn about sports & fitness insurance policies and what they cover so that your customers, employees, and equipment are protected.


Warehouse And Storage

Learn about warehouse and storage insurance - which protects storage and warehouse facilities and protects their inventory from property damage from fire and weather, vandalism and theft and liability coverage as well.


Wholesale And Distribution

Read informative articles on wholesale distribution insurance. Distributors and wholesalers face specific risks including fire, flood and weather damage that can destroy products in the distribution center - and every part of the supply chain including late supplier shipments to unpaid invoices - can effect the entire operation.


Workers Compensation

Learn about workers compensation insurance - a policy provides medical, wage and other benefits to employees who are injured or become ill at work.


Small Business General Liability Insurance Information

Additional Resources For Small Business Insurance

Small Business Commercial Insurance

Your small business faces many potential disasters including: fire, floods, theft, equipment breakdown, lawsuits from clients or customers and current & former employees. Any many other risks you haven't even thought about.

A small business commercial insurance program should provide protection for both larger and smaller disasters. The obvious things like fire, flood and theft most business owners think about... but what if a hacker infects your computers with a virus - and files containing private customer information like credit card and Social Security numbers are stolen?

Who is going to pay to fix your customers credit rating etc...? Will your insurance pay for the cost? You need to know that.

Your commercial insurance program should cover events that can close down your company, or cause it to lose revenue. Anything less than that is not enough coverage. Commmercial insurance doesn't cover everything, and all policies have exclusions and limits.

You need a written plan that allows you to get your operations back up and running as quick as possible.



Liability Insurance - The Bottom Line

Even if you are not legally obliged to have liability insurance, without it you are at risk of paying thousands if not millions of dollars in compensation and legal fees whenever suit is brought against you in court. This is in addition to the opportunity cost of lost time and resources when you are defending the allegations against you.

There are many listed liability insurance companies that can provide you with adequate liability cover for your business and profession. You need it sooner than later so that you can enjoy peace of mind as you focus on providing your customers with the best products and services and growing your business.

Additional Resources For Small Business Insurance

Protect your company and employees with the right commercial insurance policies. Read informative articles on small business insurance coverages - and how they can help shield your company from legal liabilities.


Small Business Commercial Insurance

Businesses need commercial insurance to protect their assets, employees, and customers. It helps to cover the costs of potential accidents, lawsuits, and other unforeseen events that can result in financial loss.

For example, if a customer slips and falls on a wet floor in a store, the business could be held liable for their injuries. Commercial insurance can help cover the costs of medical bills and legal fees associated with the incident.

Additionally, businesses often have valuable equipment and inventory that need to be protected from theft or damage. Commercial insurance can provide coverage for these items in the event of a disaster, such as a fire or natural disaster.

Furthermore, businesses often have employees that can be injured on the job. Workers compensation insurance can provide coverage for medical bills and lost wages for injured employees.

Overall, commercial insurance is a necessary tool for businesses to protect their assets, employees, and customers. Without it, businesses could face significant financial loss in the event of an unexpected occurrence.

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Disclaimer
Disclaimer
The commercial insurance content available on this page is for informational purposes only and not for the purpose of providing legal or financial advice.

General Liability Insure does not warrant or make any representations regarding the usefulness of or the expected results of the material contained on this website. You should contact your attorney, accountant and/or financial adviser to obtain advice with respect to any particular commercial insurance question, claim or issue.
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