With business liability insurance, the business owners can protect their company or themselves in the event of any third party claim or formal lawsuit in case of an accident. Business liability insurance is also known as general liability insurance or commercial general liability insurance.
General liability insurance protects the asset of your company and pays for obligations including medical bills and other damages and injuries caused by your employees. It also protects you from any liability as a tenant in case you damage a property that you rent.
If you think that you are unlikely to face a claim, then also buying business liability insurance is a wise investment. It does not cost much. Depending on your line of business and coverage needs, the premium range depends from $750 to $2000. The amount is certainly much lower than you may need to spend in fighting your case in the court.
General liability can be a part of BOP or Business Owner’s Policy or you can buy it on your own. If you have a BOP, you should check the limit of your liability coverage. If it is significantly low, you should go for a separate one.
Depending on your business type and the risk associated with it, the coverage option is decided. For example, if you are a building contractor, you will need more coverage options than a web designer.
The location of your business also plays a crucial role. If your business is located in a natural disaster-prone area, you might have to buy more coverage.
If you fall into a lower risk category, you can consider a BOP.
To make a wise decision of buying the best coverage, you should take the advice of a licensed insurance agent.
According to business liability insurance, the insurance company will pay the maximum amount against the claim. If your business gets sued for $250,000 for medical cost due to an injury caused by a worksite accident and $100,000 in legal fees but your coverage is worth $300,000, you have to pay the difference.
You can also choose umbrella insurance to extend your coverage limit in case your business is on a higher end of the risk scale.
You should do an extensive research before buying professional liability insurance to understand whether you need umbrella insurance or a general BOP is sufficient for you.
In case an accident occurs that may lead to claim, you should inform your insurance company as soon as possible. Explain everything in detail about the incident including the date, time, names of witnesses or any other pertinent information.
It is important to get expert advice before making any decision. Count on us today to learn how to mitigate your risk with the most effective employers’ liability insurance.