Liability Insurance for Business

During this process, you may ask, “What does business liability insurance cover?” or “If someone is hurt at my leased facility, am I responsible or is the property owner?” We’ll answer these business liability questions along with providing information on the types of special business liability insurance available. Then you’ll be equipped to discuss potential changes to your business insurance policy with your agent.

The Right Business Liability Insurance for Your Type of Business

It's important to know that there are various types of business liability insurance for every type of business, each designed to protect your company in the event of a lawsuit based on the type of business you do.

• General Liability Insurance - This is the basic liability coverage, also known Commercial General Liability (CGL), which comes with the overall business insurance policy. Depending on the type of business you operate, it may the only liability insurance you need to protect your business from injury claims, property damages, and advertising claims.
• Commercial Liability Insurance– This protects you in the event of a personal injury, or “slip and fall” lawsuit that occurs on the premises (such as a customer) or away from the premises (such as an employee). Depending on the policy, it may also include Product Liability insurance and liability for advertising injuries. It may be combined with your property coverage that protects you from costs incurred by damage (fire, flood) to your premises. In addition, it provides coverage for damages as a result of libel and slander lawsuits.
• Professional Liability Insurance – Also called Errors & Omissions Liability Insurance, this protects those businesses that provide services to their clients--such as accounting firms, technology repair and consulting firms, architects and engineers--from malpractice, errors, omissions, and negligent lawsuits.
• Auto Insurance Liability Insurance – If you run a flower shop, restaurant or dry cleaner that delivers, or any other type of business that utilizes motor vehicles, it’s critical to review your commercial auto insurance policy to confirm that you’re covered in the event you or your employee gets into an accident.
• Product Liability Insurance – This is designed for those companies that manufacture products and protects against customer lawsuits in the event someone is injured by the product.
• Commercial Liability Umbrella Insurance - For businesses that need $1 million or more of liability protection, Commercial Liability Umbrella Insurance provides additional protection in the event the limits of your underlying policy are exceeded.  For example, if General Liability coverage is at a $1,000,000 level and you have a liability claim settlement for $1,500,000, the umbrella policy would kick in the additional $500,000 left in the settlement.  Umbrella insurance does not cover settlement claims for a Professional Liability lawsuit, so it’s important to work with your insurance agent to ensure you have enough coverage in this area.

In the Event of a Business Liability Claim

• Contact Your Business Insurance Agent – This may be a no-brainer, but there should be no delay in contacting your insurance professional immediately after an accident or injury occurs. This way, you can get the insurance agent all the details necessary to start the claim process when the events are fresh in your mind. They’ll also put you in contact with the lawyer immediately, if necessary.
• Attorney Fees – In addition to any potential monies you may owe for a liability lawsuit settlement, your coverage also covers supplemental payments for attorney fees, court costs and other expenses associated with the defense of a liability lawsuit.
• Personal Injury or “Slip and Fall” Lawsuit – Slip and fall accident lawsuits are one of the most common liability claims for business. BUT – the fault and the party responsible for the injured person’s medical expenses is determined on the circumstances surrounding the accident.
• Property Owner – If you lease your building and have submitted a repair request to the property owner, one that would avoid the potential injury, but it has fallen on deaf ears, the property owner could be liable for the personal injury lawsuit.
• You Lease or Rent - If you’ve known about an element of the property that needs repair, but have failed to have it repaired or have not notified the property owner to request a repair, you may be liable for an injury as a result of a leaking roof, broken window, or the like.  If there has been a spill on your premises but you fail to clean it up, you could also be responsible.
• Person Injured – Yes, sometimes the fault of the personal injury may fall with the person injured if they did not have a legitimate reason to be on the property, if warning signs of injury were posted yet ignored, or if the person was trespassing or participating in abnormal activity on the premises.

Learn more about business liability insurance from NetQuote – get your free business insurance quotes today.

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