Any Insurance policy that covers injuries to customers and employees within the office premises is called Business Liability Insurance. It also covers for legal expenses and other costs that build up around the clock. The Requirements for Business Liability Insurance vary depending on the business type. It is important to know what aspects are covered and what is your actual coverage requirements.
General Liability : It covers virtually all aspect of a business. The General Liability Insurance can protect your business against any advertising claims like copyright infringement, slander or the injuries done to property due to fire or another phenomenon. General Liability Insurance covers all the costs for injuries or damages suffered by employees or customers.
Product Liability : If your business involves selling or products and because of which a customer incur losses using your product, Product Liability covers such claims. Product Liability usually comes bundled with the General Liability Insurance. The policy protects your business against any legal matters and covers the costs.
Professional Liability : In case your business offers a service to its customers, you will need professional liability insurance that covers expenses in the event of any mistakes made by the employees during work or if the organization issued by a customer citing negligence. The Professional Liability Insurance covers employees and independent contractors.
Employment Practices Liability : If an employee, group of employees, former employees sue an organization, Employment Practices Liability Insurance protects the business against loss incurred. The events include wrongful termination, sexual harassment, racism discrimination, etc.
What are the coverage needs for your Liability Insurance? : There are many factors that influence the coverage required. The location plays a vital role. Based on the coverage needs, you can determine the type of liability insurance required that covers your business thoroughly. It is important to get a liability insurance for your business or firm even if the chances to attract legal battle are low as the premiums for policy are in thousands or less whereas settling a lawsuit might cost you millions of dollars. It is advisable to consult a licensed insurance broker to determine the exact coverage needs.
How it Works :
When you take a liability policy with ‘x’ premium for ‘y’ years. The Insurance Company calculates the maximum amount of protection as any lawsuits or damages. If the cover is of $150,000 and the lawsuit settlement needs $100,000, your Insurance company will bear all the cost. However, if the claim surpasses the coverage max, you are entitled to pay the excess amount like $20,000 if the claim is of $170,000.
While considering any policy, requirements for business liability insurance must be calculated. Liability Policy covers all legal expenses against damages and injuries to customer or employee due to service or product or any practice. You must also check if your liability insurance covers your business set up in any country. This makes sure that you are protected any against lawsuits in any foreign countries where you have customers but no market knowledge. Other variables are provision for Better claims settlement, premiums, etc.