After you've invested your time, energy, and resources into developing
a successful business, you'll want to make sure your assets are protected.
For this, you’ll want professional liability insurance, which
plays a critical role in protecting your small business in the event
of damages to your property or occasions when you may be involved in
a lawsuit. Professional liability insurance also provides additional
categories of liability coverage.
Types of Professional Liability Insurance
- Property Insurance: Property insurance will protect your business
against damage to fixtures, equipment, machinery, furniture and computers.
It will also provide reimbursement for damaged supplies or inventory.
- Commercial Property Insurance: This type of professional liability
business insurance offers basic, broad, or special form coverage. Basic
commercial property insurance coverage is the cheapest to purchase, but special form coverage
provides more protection. Insurance that provides reimbursement for
guaranteed replacement costs is preferable to coverage that only reimburses
an item's depreciated value.
- Liability Insurance: The purpose of commercial liability insurance is
to protect against damages resulting from a lawsuit. For example, if
someone falls on your property, liability insurance will provide reimbursement
for this person's medical expenses. Your policy will typically cover
expenses for attorney fees, investigative services and payments to
victims of bodily injury or property damage. However, liability insurance
does not provide protection against standard business debts.
- Auto Insurance: This type of professional liability business
insurance is necessary if your business involves the operation of cars,
trucks, or other motor vehicles.
- Product Liability Insurance: If you manufacture a product
that is potentially dangerous, such as a lawnmower or a paintball gun,
you may also need to purchase product liability insurance in case you
are sued by a customer claiming to have been injured by your product.
Learn more about professional business liability insurance from NetQuote
– get your free business insurance quotes today.
