As a business owner, every transaction you complete can result in either a profit, or a risk. Protecting your business from the impact of potential customer lawsuits is a priority. While a precisely crafted liability insurance policy can shield your business from this type of stress and expense, it can forgotten until it’s to late.
What does business liability insurance cover?
Liability insurance covers the costs of legal fees, including court costs and the resulting award, if any is made. Imagine the peace of mind you’d have being free from worry about the attorney costs as the liability case grinds on—and if you’ve got something to take, the plaintiff’s attorneys will often make sure it does.
Liability insurance is appropriate for any business that could face potential lawsuits. There are four distinct types that you may need, depending on your business, and your tolerance for risk of financial loss:
- Professional Liability
- Commercial General Liability
- Directors and Officers liability
- Commercial Crime Business Personal Property
- Business Owner Property (BOP)
There are other risk that may be covered, including:
- Bodily injury should a client trip and fall over your briefcase, or lose footing on a slippery floor, and you’re found legally liable for their injury.
- Property damage and data loss should you accidentally spill coffee on a client’s server that causes data loss, or a tree falls on their car in your parking lot.
- Personal injury should an employee talk to a fellow employee of the shop about one of your clients in a false and unflattering way. The client learns of this discussion and sues for slander. We will cover the subsequent claim, up to your General Liability policy’s limits of liability, and pay for an attorney to defend you if necessary.