Liability insurance is a fundamental need for small businesses. It provides coverage in the event your business must pay damages due to legal claims made against it.
However, the type of liability insurance a business should carry varies from company to company. To determine what specific liabilities you have, ask yourself four key questions: Is my industry high-risk? Do I sell products? Do I offer services? Do I have employees?
The answers to these questions will help you decide which of the following types of liability insurance you need.
1. General liability: This is the basic coverage any small business should have. It covers libel and slander claims, physical damage to others’ property, and injuries to others.
2. Professional liability: Also referred to as errors and omissions insurance, this covers professionals who offer consulting or advice-type services. If a client is unhappy with the results of your services and decides to sue, this insurance covers your legal fees.
3. Product and completed operations liability: This insurance covers damage caused by your products or work completed off-site and not on the company premises.
4. Employment practices liability: If you are sued by an employee for unfair practices, sexual harassment, or discrimination, this insurance will cover the costs involved.
5. Commercial excess liability: This policy insures your other policies. It offers coverage in the event a claim exceeds the limits of other coverage.
Not sure if your current policies cover all your liabilities? Give me a call to discuss your options, and we’ll make sure all your bases are covered.