Everything You Need to Know About
Commercial Liability Insurance
Every business should consider commercial liability insurance. This type of insurance can protect your business in the event that someone is injured on your property or if you are sued for damages. There are many reasons to consider insurance.
Reasons to Consider Commercial Liability Insurance
1. Depending on Your Industry, it May Be Required by Law
While liability insurance is not always required for all businesses, many industries are required by law to have liability insurance for their business. If you are in one of these industries, it is important to make sure you are in compliance with the law so that your business does not get shut down or fined.
2. It Protects Your Personal Assets
Another reason why it's important to have liability insurance is that it can help protect your personal assets. If you are sued for damages, your business's liability insurance will cover the cost of any damages that need to be paid out. This will help ensure that your business is not bankrupted by a lawsuit, and, therefore, that your personal assets are not at risk.
Things That Liability Insurance Covers
1. Property Damage
If you are sued for damages that occur on your property,liability insurance for your business can help cover the costs. This includes both physical damage and any legal fees that may arise from the incident.
2. Bodily Harm
If someone is injured on your property, liability insurance can help cover the costs of medical bills and legal fees. It also protects you from being sued by the other person or their family members if they have suffered an injury while working at your business location.
3. Product Liability
If you sell a product that is later found to be defective, liability insurance can help protect you from being sued. This type of insurance also covers you if someone is injured by one of your products.
Additional Liability Coverages to Consider
Liquor Liability Coverage
If you serve alcohol at your business, it is important to have liquor liability coverage. This protects you in the event that someone becomes intoxicated and causes an accident after leaving your establishment. In 2016, drunk driving accidents accounted for 28% of all accident-related deaths. Bars and restaurants are especially at risk for lawsuits related to these kinds of accidents.
Cyber Liability Coverage
If you store customer data online, cyber liability coverage can help protect you in the event of a data breach. This type of coverage can also help you pay for any legal fees that may arise as a result of the breach. Industries that could benefit from this kind of insurance include healthcare providers, banks, and financial institutions.
Hired & Non-Owned Auto Coverage
On average, over 6 million passenger car accidents happen every year in the United States, so it's important to protect against them if your business has you or your employees on the road. This type of insurance covers you in the event that one of your employees is in an accident while driving their own car on the job. It also protects you if someone uses your business vehicle and they are involved in an accident.
Directors and Officers Liability Coverage
This coverage protects directors and officers of a company in the event that they are sued for wrongful decisions or actions while in their role.
Pollution Liability Coverage
If your business is in a field that could potentially cause pollution, it is important to have pollution liability coverage. Some examples of businesses that could benefit from pollution liability coverage include manufacturing, construction companies, and more.
How to Find the Right Provider
Get Quotes From Several Providers
Once you know what type of coverage you need, get quotes from several insurance providers. This will give you a good idea of the range of prices that are available. Companies like ISU-ARMAC Insurance can provide a quote within minutes.
Make sure to ask about any discounts that may be available, such as those for businesses that have a safe workplace or have been in operation for a certain number of years.
Ask About Exclusions
Be sure to ask about any exclusions that may be included in the policy. For example, some policies may not cover accidents that occur off-site or they may not cover lawsuits filed by employees.
It is important to ask about these exclusions before you purchase any insurance so that there are no surprises later on down the line.
Liability insurance is an important part of any business's risk management plan. By understanding the different types of coverage available, you can find a policy that meets your needs and protects your business from potential lawsuits.