When it comes to running a business, there are many risks that come with the territory. To protect your business, it is essential to purchase liability insurance. This type of insurance helps cover the costs associated with legal claims and lawsuits that may arise from accidents, injuries, or damage to property. There are two main types of liability insurance: bodily injury liability and personal liability.
Bodily injury liability helps pay for the other driver's medical bills, lost income, and emergency help if you're injured in a car accident and you're at fault. This type of insurance also covers legal costs to defend a claim related to one of the three areas mentioned above, as well as payments for damages if you are found responsible.
Personal liability insurance
covers individuals against claims resulting from injuries or damage to other people or property suffered on the insured's property or as a result of the insured's actions. This type of coverage is recommended for anyone with a net worth who exceeds the combined coverage limits of other personal insurance policies, such as home and car coverage.Business owners can purchase liability insurance that covers them if an employee is injured during business operations. The manufacturer of a product can take out product liability insurance to cover it if a product is defective and causes harm to buyers or third parties. Professional liability insurance, also called liability insurance for errors and omissions, pays for the cost of your defense and any damages awarded, up to the limits of the policy. Most of the time, Business Owners Policy (BOP) liability coverage is for situations where a third party claims that you were negligent and is suing you for damages. A number of situations, people, and circumstances are excluded from the BOP's standard liability coverage. It's not a question of whether or not you need liability insurance, but what types fit the needs of your company.
For small businesses, the most efficient and least expensive way to purchase liability insurance is often as part of the Business Owners Policy (BOP), which combines property and liability insurance into a single contract.
