In business there is always some risk involved, such as hiring workers, taking out loans and damages to the property. In order to limit the risk, businesses need a detailed insurance plan. There are several types of liability insurance to protect businesses from risk.
General Liability covers your business for bodily injuries and property damage. These claims are common in the course of regular business hours, such as a customer getting injured at your location or simply by using your product. It also covers advertisement claims made by other businesses against your business. General Liability protects your business from third party claims.
Product Liability Insurance
When a business manufactures a product, it also takes on liability. If a product causes damage or injury to a third party, the business will be liable. Product Liability Insurance insures the business from lawsuits. For example, if you have a bakery business a product liability insurance may protect you when a product at the bakery goes bad and makes the customer sick. Product liability will cover the cost in case a lawsuit is filed. A business also needs product liability even for business to business operations. Product Liability covers the product sold or distributed by your business. Getting a lawsuit from your clients can be stressful and expensive. In order to avoid lawsuits Product Liability Insurance is recommended for product based businesses.
Professional Liability Insurance
Professional Liability Insurance protects businesses that provide services. Errors and omission can occur in day to day business practices. It is the most common type of insurance used by doctors and lawyers since they provide a professional service. If a customer files a lawsuit for a service your business provides, professional liability covers it.
What type of Liability Insurance does your business need?
Every business has unique risks. Different types of businesses require different types of insurance. In order, to insure your business is protected, the insurer will help you determine the risk and liabilities involved.