Insurance coverage is essential to protect your property. When signing up for an insurance policy, you will find that there are several types of coverage options available to you. One type of coverage that it’s essential for business owners is liability insurance. Today we’re going to discuss what liability insurance is, what’s typically covered, the importance of coverage, and common types of liability insurance.
What is Liability Insurance?
Liability insurance provides financial protection if you’re responsible for someone else’s injuries or property damage. Liability is standard protection that comes with most auto and property insurance policies. With auto coverage, it may be referred to as auto liability coverage. For property insurance, coverage may be referred to as personal liability coverage.
What Does General Liability Insurance Coverage?
General liability insurance is vital for businesses. It provides a range of coverage needs that will protect your company from unexpected situations. General liability insurance protects your business from covered claims resulting from injuries and damages. The typical policy limit for businesses is $1 million per incident and $2 million aggregate (the policy maximum payout). In addition to this, general liability insurance can also provide additional coverage, such as personal advertising injury, property damage, completed operation, and medical payments.
Importance of Liability Insurance
Liability insurance is essential for many reasons. For starters, liability coverage is basic insurance coverage that is a requirement in nearly all states. Even more, having liability coverage protects you financially should you have an accident or damage someone else’s property. As a result, you can avoid the financial burden of paying out-of-pocket for expenses you might not be able to afford. Liability insurance keeps you covered at all times and individuals can have peace of mind knowing that they are prepared to deal with unexpected occurrences.
What Happens If I Don’t Have Liability Insurance?
Operating without liability insurance is never a good idea. Not only is liability insurance a requirement in most states, but violating these laws could lead to serious consequences. If you cause damage to property or injury to a person, you could be facing serious costs that can put you in a financial hole. Even more, you could be sued by the other party if you are not able to meet financial responsibilities. Operating without liability is never a good idea. Sufficient liability insurance offers you the best protection and ensures that you are covered effectively in the case of a problem.
Types of Liability Insurance
Liability insurance is often associated with auto and property insurance, but there are several types of liability coverage available for your needs. Here are four types of liability insurance coverages to know:
1. Umbrella Liability
Umbrella liability policies are a type of personal liability coverage meant to protect businesses against serious losses. Coverage will generally go into effect when the limits of the insurance are met.
2. Employer’s Liability and Workers’ Comp.
This is required coverage for employers. It protects businesses against liabilities arising from injuries or a death of an employee.
3. Commercial Liability Insurance
Commercial liability insurance provides coverage for lawsuits that result from injury to employees and public citizens, property damage due to an employee, and injuries due to the negligent acts of an employee.
4. Indemnity Insurance
Indemnity insurance offers insurance coverage that protects businesses against claims of business negligence resulting from mistakes from the company or a failure to perform.
5. Protect Yourself with Liability Insurance
Liability insurance is essential coverage. Whether you have a vehicle, property, or business, liability coverage is vital to protect you financially. Having liability will prevent you from being financially responsible for potential damages or injuries that you’ve caused.
Invest in General Liability Insurance for Your Business
If you’re interested in general liability insurance for your businesses, be sure to thoroughly research the type of coverage you need for your company. All liability insurance isn’t made equal. It’s always essential to ask about what’s covered and not covered before committing. Choosing the best liability coverage for your company will provide your company with optimal protection as you continue to operate.