Liability Insurance

Introduction to Business Liability Insurance

We briefly talked about business liability insurance in the general business insurance section of InsuranceNook.com, but we'd like to go into a little more detail on the subject here.

Liability insurance is how you protect your company from the financial ruin that can result if someone is hurt while on your property, injured by one of your products, or brings a lawsuit against you for negligence. Almost every business should have liability insurance, because you never know what can happen, no matter how safe you are.

One of the best things you can do to save money is to compare business liability insurance companies. You can get free quotes and compare prices on insurance plans that fit your needs here at InsuranceNook.com!

Why Business Liability Insurance Is Good For You

People have this remarkable ability to hurt themselves. They also have a tendency to blame anything they can, especially if they can get money out of it, and who wouldn't? Whether it's slipping on the stairs or spilling coffee on their leg, it's very likely that during the course of your business operation, someone will hurt themselves and want money. Liability insurance can make sure that you don't have to pay for these incidents, and the insurance company will generally work very hard to make sure that the appropriate action is taken when a liability case is brought before you. In a sense, you can't afford not to have business liability insurance.

Common Types of Business Liability Insurance Plans

We discussed liability insurance under the section on business insurance, and generally liability plans are purchases as a part of a larger plan. Here are a couple common specific liability insurance plan types.

Commercial Liability Umbrella
Offers the broadest coverage, and pretty much covers the spectrum that all liability insurance covers. Sometimes, however, umbrella is a phrase that is thrown around loosely, and may not mean it actually has everything, but almost everything. You will be smart to carefully read your plan details.

Employment Practices Liability
This covers harassment, wrongful termination, discrimination and other claims by employees for improper treatment. This type of policy specifically is designed to protect the company against the damage of a lawsuit.

Errors & Omissions Insurance
This kind of insurance coverage protects you when you make a mistake in a service business that harms someone. For example, doctors carry malpractice insurance, which protects them in case they make a mistake on a patient and are sued. This is an example of errors and omissions insurance. Generally, each industry has its own EOI.

3 Common Business Liability Insurance Questions & Answers

Q. How can I save money on liability insurance?
A. Join an association – you can generally get great discounts on liability insurance by belonging to a group of some sort. Of course, another great way to save money on liability insurance is to compare coverages by requesting free quotes from competing companies here at InsuranceNook.com!

Q. How much liability coverage does my business need?
A. Try to determine your industry's average legal costs. Talk to your peer companies and find out how much they are paying, and what their average yearly settlement costs are. The goal with insurance is to save yourself money, so you'll want a plan that offers you protection but doesn't drive you bankrupt itself.

Q. What is a specialist broker?
A. This is an insurance representative that knows your industry well and specializes in helping companies in your field find the right insurance coverage.

Conclusion

Business liability insurance can save your company from financial destruction due to an accident or mishap on your premises or due to one of your products. While it's not a replacement for safety measures throughout your business, liability insurance can give you peace of mind and protect you from having to go bankrupt because someone slipped and fell on your premises.