It is important that all businesses, even home-based businesses, have commercial business liability insurance. It protects your business from being held liable for damage caused by your employees or during service. These damages could include bodily injury or property damage to a third party. Some companies choose professional liability, while others choose general liability, and some choose both. It depends on the needs of your business.
Professional liability insurance protects businesses from another person’s claim. Companies offering both professional and personal services can benefit from liability insurance. This type of coverage could include a dissatisfied client or negligence.
General liability insurance protects businesses from another person’s claims of bodily injury. It also covers property damage, data loss, and personal injury. In some cases, general liability insurance can also cover your defense costs or medical payments.
You may need a combination of the two depending on the nature of your product or services. Call your insurance agent if you’re unsure which type you need.
That’s like asking why you need homeowners or auto insurance. One lawsuit could cost you your entire business. Accidents happen, and it is best to protect your assets.
Let’s say someone trips and falls over a rug at your place of business. If they get hurt, then they could bring a lawsuit against you for bodily injury. Maybe an employee spills coffee on a client’s server. Now you are being sued for loss of data and negligence. Perhaps a salesman is frustrated with a customer and decides to talk about that person in an unflattering way. If the client finds out, then they have grounds to sue for slander.
You put your business at risk if you do not possess coverage for any one of these events.
You need commercial business liability insurance if you do any of the following:
- Interact with clients face to face
- Have access to customer’s equipment
- Represent your client’s business
- Use third-party locations for any business-related activities
Types of Liability Insurance
You should have a solid understanding of the types of commercial business liability insurance and what you need for your type of business. Throughout your day, you may interact with contractors, vendors, clients, and employees. Any one of these people could claim your business caused them injury or loss. To protect against claims like these, you need general liability insurance.
There are other important types of insurance besides professional liability and general liability. You should talk with your insurance agent and see if any of them apply to your situation.
- Workers’ compensation
- Unemployment Insurance
- Disability Insurance
How To Get the Coverage You Need
Evaluate your business needs and weigh the costs of coverage, and don’t be afraid to seek the guidance of a professional. Post Insurance provides a variety of different types of coverage and would happy to assist you in choosing what is right for you.
For a free quote call us today at (800) 262-9998 or connect with us online.