Business owners are always aiming to please their customers and as part of this, they are always ready to put plans in place to make sure that customers are well-protected. While businesses strive hard to ensure satisfaction, it is not a guarantee that some customers will not experience certain problems that they blame the business owner for. To cater to such instances as this, Absolute Insurance recommends that business owners get liability insurance. Liability insurance is designed to help business owners cater to third-party accidents.
While this insurance policy is great for a business owner, in most cases, it is not enough to cater to your business needs. Most businesses will find themselves needing several other types of insurance liability policies over time to augment the coverage which is offered under their general liability coverage. As a business owner, below is some of the information you need to know.
What is Business liability?
Businesses interact with a lot of customers daily and this means there is an increased chance that customers may be unsatisfied with the quality of services provided. In such cases as this where your customer claims to have suffered financial and/or physical losses due to your negligence, then they may hold you responsible and may demand payment or compensation for the damage.
In such cases where you are being held liable for damages, your liability insurance comes in to play. This insurance policy covers all third-party losses resulting from the mistakes of the business policyholder. This makes the policy not only right for your business but also a protection for your customers. You can also learn more about general liability insurance for non profit organizations.
What is a General Liability Business Policy?
Every business owner must understand the need for liability insurance. However, within any given industry, there are numerous liability insurance policies for business owners to choose from. A business owner does not necessarily have to choose one as they can choose a combination of policies that best suit their business needs.
In most cases, several business owners choose the Commercial General Liability (CGL) policy as their starting point. The Commercial General Liability (CGL), being the most common type of liability insurance coverage, applies to the liabilities nearly all industries and businesses face. The insurance policy usually provides the following coverage:
- Property Damage Coverage: this applies when the business owner or their staff damage a customer or client’s belongings which have been left in the business’ care or a client’s property that has been damaged on the business’ property. This coverage usually caters to the costs of repairs or replacement.
- Bodily injury coverage: This type of coverage covers the cost of damage that has been caused to a customer who has suffered bodily injury as a result of the business’ negligence. Such cases where this insurance policy kicks in include slip, trip, and fall accidents due to wet floors and other factors. The customer may be able to claim medical costs, rehabilitation costs and other costs in damages.
- Legal Assistance: In some cases, a customer may sue for their losses and this puts the business in a legal battle. Such coverage as this covers the cost of hiring an attorney to represent the business in court.
- Accidental medical payment coverage: In the event that a person has sustained an injury which is due to no fault on your part, this coverage offers them a form of compensation for the injury suffered.
It is important to note that in some cases, businesses may receive a general liability policy as part of their Business Owners Policy (BOP), while others may need to purchase this as a separate entity. However, while this insurance policy covers some of the most common liabilities businesses may be faced with, it does not necessarily cover all the liabilities you may be faced with and this may mean purchasing additional liability policies.
The Essential Types of Business Insurance
Whether you are a small business or a large corporate body, certain insurance policies need to be in place to ensure that you are properly covered. Below are some of the most important policies you can choose from to cover you in case any problem arises.
I. Property And Contents Insurance Policy
This policy offers coverage for damages or losses affecting the physical assets that are essential to your business. This policy may provide coverage for your building, equipment, furniture, and others.
Ii. Commercial General Liability
As stated above, the Commercial General Liability (CGL) can pay the cost of liability demanded by a third party, for instance, a customer at your establishment. This policy offers coverage for bodily injuries, personal injuries, and property damages.
Iii. Business Interruption Coverage
This covers the losses which you may have suffered due to interruptions caused by accidents. Interruptions may be due to temporary closure, fire, water damage and more.
Iv. Equipment Breakdown Coverage
If some equipment is essential to your business, getting this coverage will provide you with the financial aid you deserve in the event your equipment breaks down and needs repairs or replacement.
v. Errors and Omission Coverage
This insurance policy provides coverage for professionals in the event they make a mistake in the delivery of their professional duty or service.
Other policies that a business owner may purchase include:
Commercial Auto insurance
Employment practices liability insurance (EPLI)
Directors and officer’s coverage
Worker’s compensation coverage
Inland Marine Insurance
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