Which Type Of Liability Insurance Does Your Business Need?

Currently, there are over 30 million small businesses in the United States. That number is growing because of entrepreneurs like you who want to start their own company.

Before jumping the gun, there are things you need to know. One of them being the type of liability insurance needed for a business. Read on to learn more.

General Liability Insurance

General liability is the main type of liability insurance that most companies absolutely need. This coverage protects an organization from bodily injury and property damage claims.

However, these claims only pertain to the customers who visit your store. For example, if a client slips on your property, you may have to cover their medical treatment. A general liability insurance policy will help pay this.

Business insurance experts will recommend opting for a general liability plan that includes product liability. This will help cover claims that occurred because of a product.

Professional Liability Insurance

Another type of insurance is a professional liability which covers claims relating to problems with the service your company provides. It is also known as errors and omissions insurance.

This covers your consulting business and much more.

An example of when you would need this insurance policy is if your accounting team makes a mistake on a customer’s financial statement. You’ll be able to cover legal costs to fix this issue with this plan.

Employment Practices Liability Insurance

Another type of liability insurance coverage is employment practices otherwise known as employers’ liability insurance. This can cover claims made because of wrongful termination, discrimination, and more.

Employees would be the ones filing the claims that are covered under this policy.

Other Types of Business Insurance

When you figure out where to get business insurance, you’ll learn that there are more policies than liability coverages, policies your company can greatly benefit from. Consider these as well when opting for coverage:

Commercial Property Insurance

This type of insurance covers any damage that happens to your property. For example, if any equipment, tools, or furniture is damaged by a storm or even a break-in.

Workers’ Compensation Insurance

If an employee is injured or sick while they are working, workers’ compensation insurance will provide them with benefits. Many states require a business, no matter the size, to have this coverage.

Commercial Auto Insurance

If your employees need to drive to do their job, having commercial auto insurance is necessary. This policy covers car accidents your employees get into when driving for work.

Commercial Umbrella Insurance

Commercial umbrella insurance can help extend general liability insurance. For example, if a claim against your company is higher than your original policy limits, umbrella insurance can lend a helping hand.

Which Type of Liability Insurance Does Your Business Need?

When it comes to finding the right type of liability insurance, there aren’t many options to choose from. Most businesses at least have general liability and professional liability coverage plans.

Liability insurance is not the only insurance you’ll need to run an effective business. Keep all business insurance types in mind when speaking to an insurance agent.

For more financial business advice, check out the other posts on our blog.