Regardless of what the type of business you own, giving it an extra layer of protection will always be a wise investment. We should never gamble with our company’s assets and protecting it with the right insurance policy ensures that our business is prepared for any eventuality. But with all the insurance policies available in the market today making the choice could be difficult.
Studying your options ensures that you’re getting the right set of coverage for your business. Read along and discover facts about business liability insurance – one of the most popular business insurance policies available.
What is business liability insurance?
This is basically a type of insurance that protects your company’s financial health. Although this insurance is commonly used by small businesses, big companies also stand to benefit from this type of insurance. Some states even consider this as mandatory for all business. Here’s a list of the four categories covered by business liability insurance.
- Personal injury
- Damage to others’ property
- Misleading or false advertising
- Bodily injury
Policies and coverage
Just like any type of insurance policy, a Key Man Insurance Policy has its own set of coverage and policies. Obtaining all these policies is not a must. You just have to ensure that the coverage and policy you choose matches your business needs.
- Professional liability – provides coverage for malpractice and/or E&O (errors and omissions). This insurance coverage also covers lawsuits that may be brought against your company.
- Commercial general liability – this covers any bodily injury claims. It also handles property damage and physical injury issues. Usually, this is paired with property insurance.
- Employment practices liability – this coverage protects the business owner, directors, officers, and the entire company as a whole from lawsuits by former, current, and prospective employees. This is common coverage for huge companies.
- Product liability – this applies to all businesses that involve manufacturing and product distribution. This will protect you and your company from any claims caused by your product’s negative effects.
- Pollution and environmental liability – this is considered as a rare coverage. Its main job is to protect you and your business from the clean-up costs of your property. It will also protect you from any lawsuits that have something to do with the environment.
Factors you should watch out for
Although this may sound perfect for any business, you should still study every aspect of the insurance policy. One factor you should keep an eye for would be its premiums. It is a fact that business insurance premiums are included in the company’s overhead expenses. However, you should still ensure that you’re only paying for the coverage you need.
It also pays to study your coverage. Purchasing coverage that doesn’t match your business needs is money that could be invested in better things. On that note, you should ensure that your business liability insurance is perfectly-tailored for your business.
We should always ensure that our employees and the entire company are protected against all eventualities. Problems and challenges don’t have warning messages; hence, it’s wise to keep our business protected with the right insurance.
Article posted by guest writer. We are not affiliated with any company or individual nor give insurance advise.