You may be wondering what type of business liability insurance to buy. The nature of your business as well as the kind of services you provide will help determine your needs. Learn more about the most common types below:
General business liability insurance:
A general liability policy can protect you against costs that result from bodily injury, property damage, medical expenses, legal costs, judgments, and personal injury claims such as libel and slander. If you rent or lease your space, commercial general liability, or CGL insurance, may also provide coverage for damage to that workplace. Depending upon your situation, you may need premises liability insurance.
Professional liability insurance:
Also known as errors and omissions insurance, “E and O” or malpractice, this coverage is available for business owners who need protection against a range of claims including errors and negligence. Certain professions, such as physicians and chiropractors, are required to purchase malpractice insurance in order to practice in their state. If your state does not require this coverage, it may mandate that some professionals, including lawyers, disclose their lack of professional liability insurance.
Product liability insurance:
This coverage is necessary for companies that make, distribute, or sell a product since they’re often liable for its safety. This type of insurance helps prevent a financial loss if the product is defective and causes injury or harm to the consumer. The amount of product liability coverage you need varies by the severity of your company’s risks.
There are many other types of liability insurance as well, and some professions need specific types of liability protection. For example, corporate officers often purchase “directors and officers” liability insurance to protect the company in the event that a senior staff member takes an action or makes a statement that results in a liability claim.
– Article courtesy of Trusted Choice®