Business Liability Insurance | Types and Importance

4.2
Business Liability Insurance | Types and Importance

Business Liability Insurance | Types and Importance

Many businesses, especially small businesses, ignore the need of business liability insurance. Though, they take all measures to protect their businesses against risks by taking insurance for physical assets like buildings, stocks and goods, they do not consider protecting their businesses against various possible liabilities they may face.

Types of Business Liability Insurance

Business liability insurance from eldoradoinsurance.com helps small business owners to secure their businesses by protecting against liabilities like public liability, employer's liability, professional liability, and product liability. Depending upon the type of business you are in, you should purchase suitable insurance. Following are some of the prime types of insurance suitable for small businesses.

General Liability

This insurance is helpful to small businesses in protecting the owners from claims of liability raised due to property damage or a physical injury caused to the general public, employees or customers resulting from the operational negligence in course of the business. This insurance protects you by compensating for the medical expenses of bodily injuries caused to a person. It also protects you against claims of damage to the third party's property.

Professional Liability

If you are a software consultant, plumber, chartered accountant or any such professional offering your service for price, the probability of facing professional liability is high. Professional liability protects professionals from risks of liability resulting from loss of data, claims involving malpractice, say, copying of data, breach of confidence, accidental loss of data or inadvertent mistake by your employee.

Product Liability

When an individual gets injured by using a defective product that you have sold or manufactured, law suit can be filed by this individual against your business. Product liability protects your business from such liabilities by taking care of all the legal hassles and the compensation claims.

Importance of Business Liability Insurance

Business liability insurance protects your business from various liabilities. It is, however, advisable to check the suitability of the insurance with respect to the amount of coverage and the risks involved in the business.

Protection Against Claims

Protection against claims resulting from injuries, damages and malicious ad: Business liability insurance protects your business from liabilities involving bodily injury caused by the operations of your business to any of your customers, employees or general public

Legal Fees and Medical Bills

Business liability insurance finances the medical expenses involved in the treatment given to the injured and the expenses involved in litigation. Even the insurance lawyer would represent you in the court, in the instance of inability to attend the court hearing.