Have you just started your business? Do you have concerns regarding insurance? If yes, we’re glad that you’ve come here. Business owners have multiple things in their minds, such as hiring a money expert, to regarding the security of the business. Unfortunately, many overlook the idea of small business insurance for their companies. Keep in mind that one of the most important policies for any business is to get liability insurance. Wait here! What is this insurance plan, and what does it cover? In this article, I will guide you through liability insurance. Considering you as a beginner, I will be explaining everything precisely.
What does it cover?
Simply put, liability insurance is responsible for covering third party claims that have been filed by a business when they say that your business has caused them any sort of damage such as bodily injury, property damage, emotional loss or any other. A simple example is of a customer who got injured at your business headquarters as a result of electric shock in the bathroom. Your business will be responsible for paying for his medical expenses. Liability insurance will provide for the medical expenses of that person easily.
Moreover, if you run into trouble with somebody even trying to sue your company, liability insurance will protect your business by paying the costs that are involved. Therefore it is crucial that you get this insurance plan. If you haven’t registered for a suitable plan, then you must get professional liability insurance online for the security of your business.
Different types of liability insurance:
You will be surprised to know that there are several commercial insurance plans available. It is better that you chose one that rightly fits with your business type. Some of the most conventional ones include:
- Product Liability:
This liability insurance type is responsible for covering the damage costs of the products made in batches and distributed by a company. Product liability offers damage coverage in case a problem has been caused by a defective product.
- Cyber Liability:
We live in a world where phishing scams and cyber-attacks are very common. This type of liability covers the damages in a case where business information has been stolen.
- Commercial General Liability:
This is the most commonly used business insurance liability. This segment provides coverage for property damage, slander, personal injured, and libel.
- Professional Liability:
This type of insurance plan is mostly used by businesses that provide services rather than products. It is also known as errors and omissions insurance plan. Ever heard of professional malpractice? This type of plan provides coverage for professional mistakes done by the company.
Liability insurance doesn’t cover everything:
Keep in mind that liability insurance has been designed to cover only third party claims. This means that employee injury and company’s internal claims won’t be covered by this policy at all. A simple example is of employee fight or somebody suddenly falling from the escalator. You need to know about this type of insurance before putting your hands in it.
How much do you need to pay?
The payment for this type of insurance is related to the nature of your business. If you are buying an insurance policy for your small firm, the costs wouldn’t be as high as would be with a large business. Keep in mind there are policy limits. For example, you will have to pay $62 per month for an average policy.
I’m sure that you would have understood the importance of liability insurance by now. If you are already running a successful business or want to expand your business, it is crucial that you register for this policy as soon as possible.