Types Of Business Liability Insurance You Might Need

22 October 2015

Robin Wells

Businesses are a frequent target of lawsuits both from employees and the general public alike. Therefore, even if you believe that you are operating fully within the law, you will need to make sure that you have adequate business insurance to protect yourself against lawsuits. There are several ways you can protect your company from various forms of liability, from discrimination claims to product defects.

General Liability

General liability insurance provides your business with coverage for lawsuits. The insurance not only covers any expenses if the plaintiff wins a judgment against you, but the insurance will also cover court costs and attorney fees. General liability insurance also protects you as a tenant if anything happens to your office space. For instance, if your office catches on fire, your general liability insurance provider will reimburse your landlord.

Product Liability

Besides general liability insurance, you can choose more specific forms of liability insurance depending on your type of business. If you manufacture products, for insurance, consider product liability insurance. Not only will it protect you from any damages you face resulting from a lawsuit, but it also covers monetary losses from product recalls and the cost of removing the defective product from your shelves.

Employment Practices

If you have employees, you will likely need employment practices insurance. This protects you from discrimination, sexual harassment and the wrongful termination of employees. The cost of your coverage depends on how many employees you have, whether you have been sued in the past and whether there are unique factors that expose your business to greater risk.

Pollution Liability

One of the rarest policies provided to businesses is pollution liability. If the nature of your business makes it more likely that it will be fined for environmental regulation violations, you may need to find a provider specialized in this.

Additional Policies Provided By Your General Liability Insurer

Besides selecting an insurance provider that specializes in a specific form of liability that you are concerned about, you can ask your general liability insurance provider about any additional forms of coverage you can have added. These can include:

• Advertising injury

• Personal injury

• Medical expenses

• Contractual liability

• Property damage

• Liquor liability

Having these specific categories can help keep the overall cost of liability insurance lower because you only pay for whichever risks your business will most often face.

Besides insurance, there are other ways to protect yourself from liability. For example, you could set aside a legal defense fund. But liability insurance generally provides the most coverage at the lowest possible cost. For more information, contact AZBY Brokerage Inc or a similar company.

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