You need to consider purchasing business liability insurance to protect your business from financial loss in the event of lawsuits or third party claims that are common in today & # 39 There is a number of insurance policies available in the market, but you need to purchase one that suits your business & # 39; needs and covers every risk that your business is likely to face.
Business liability insurance protects business and its owner in case of physical injury or damage to the property. The coverage includes damages due to lawsuit in addition to legal costs.
There are four main types of business liability insurance, purchase the one that suits your business & # 39; needs.
• General / commercial liability insurance: It is also known as Commercial General Liability (CGL) insurance. This coverage protects your business like the lawsuit made by third party for bodily injury or property damage. Under this cover, CGL pays the medical expenses and legal fees.
• Professional liability insurance: Professionals such as accountants, doctors, lawyers and engineers in the event of claims made by a third party or client for negligence, malpractice, errors or omission, while providing services to the clients. Professional liability insurance is a legal requirement for some professionals who are specialized in those relevant fields.
• Product liability insurance: Product liability insurance protects against liability from the use of faulty or damaged products. It is mean for manufacturers, wholesalers, distributors, retailers, or anyone who sell the product to the public. injuries or damage caused to the customer by using a defective product.
• Commercial auto insurance: This insurance covers both liability and property risks a business owner faces, while using cars, trucks, autos or trailers. During driving, if the company vehicle injures other people or damages their property, the policy covers the claims made by the third party. This policy may also cover your employees, using their personal vehicles for your business purpose.
Types of claims
The business liability insurance covers four basic claims made by the third party.
• Bodily injury - The liability covers the claims, if a person is accidentally injured by your company or its employees.
• Property damage - this type of liability coverage pays for damages caused by you or your employee to others - such as vehicles, house or furniture.
• Personal injury - Personal injury. In personal injury liability, it covers the policy holder from third party claims on issues like this slander or libel. This cover also contains damage to a person & # 39; s or company & # 39; s character, invasion of privacy or false arrest.
• False or misleading advertising injury - An advertisement injury is a harm caused in a third party as advertising efforts. The claims that are covered are slander, libel, copyright infringement and invasion of privacy.
Costs covered
Business liability insurance explicitly covers three major damages caused by the policy holder. In case of compensating damages, general damages and punitive damages. Punitive damages are additional charges or penalties, made by the third party, which the policy holder should pay.
Benefits
Having business liability insurance company The insurance company not only pays for the damages but also pays the legal costs on behalf of the policy holder. settlement by the claims made by third party, the insurance company will pay up to the limit of the policy holder & # 39; s coverage.
Business liability insurance is, then, useful for your business as it protects your business from unexpected financial losses.
