Many businesses across industries face a range of risks when it comes to lawsuits both similar and different. It is important to consider your business’ unique needs so that you can get the right insurance.
Some of the most common and useful liability insurance policies include:
General liability insurance is perhaps the most common liability insurance policy. This insurance covers three main areas:
- Bodily Injury: Bodily injury general liability insurance covers medical bills someone may face as a result of an injury on your business’ property.
- Property Damage: Property damage general liability insurance covers expenses related to third-party property that is damaged as a result of the business’ everyday operations.
- Personal and Advertising Injury: Personal and advertising injury coverage provides compensation for claims concerning libel, slander, copyright infringement, theft of an advertising idea, malicious persecution and more.
Where general liability insurance covers nonprofessional negligence, professional liability insurance covers professional negligence tied to a professional or specialized service. For example, if an advisor makes a mistake that costs a client money, professional liability insurance can cover the damages. This insurance is known by different names depending on your industry, such as errors and omissions insurance or medical malpractice insurance.
Cyber liability insurance is becoming increasingly important for every business across industries as more and more information is kept electronically. This insurance can cover expenses related to cyber attacks and data loss, including recovery costs.
Umbrella liability insurance serves to fill in the gaps left by your other liability insurance policies. If your general liability policy or professional liability policy reaches their limits for a single claim, for example, umbrella liability insurance will step in to cover the remaining expenses. This also applies to the liability insurance available under your business’ commercial auto insurance policy.
Directors and Officers Liability
Directors and officers liability insurance protects your business and its key employees. If one of your directors or officers faces a claim due to their activities working for your business, directors and officers insurance can cover legal expenses. Many of these policies also include Employment Practices Liability (EPLI), which covers claims regarding discrimination, sexual harassment, wrongful firing or hiring, failure to promote, mismanagement of employee benefits and more.
Every business is different, so be sure to ask an insurance agent about your business’ needs. You may also need different liability policies and limits for certain licenses depending on your industry.
Also Read: Never Make These Three Business Insurance Gambles
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