Making the Most of Business Liability Insurance

Get the liability insurance coverage you need to keep your business protected

Businesses can protect themselves from lawsuits with proper business liability insurance. From products on the shelves to employee mishaps, insurance remains an important necessity on the business scene. The type of business you have dictates your vulnerabilities and insurance needs. For example, insurance for product deficiencies isn't a concern if you're a consultant, but errors and omission insurance is paramount.

Liability insurance quotes should be based on your company's unique situation. Many insurance companies specialize in fields such as technical companies or medical offices, so these companies may be better prepared to meet your needs. Over the long haul, it's important to make sure that you're properly insured so that if a loss does occur, you're covered and can continue your business.

Find out why making the most of business liability insurance will save you money in the long run by doing the following:

1. Get a business owner's policy or commercial package policy with proper corporate liability coverage.

2. Ensure that you have proper liability insurance on the road.

3. Consider endorsements to be added to your general business liability insurance to cover additional needs.

 

Get the business coverage you need from liability insurance companies

Whether a business owner's policy (BOP) for a small business or commercial package policy (CPP) for your larger or more specialized business, get the corporate liability coverage you need. Protection for your business includes most liability for damages caused by you or your employees and from most occurrences on your premises.
Try: The Hartford offers a customized approach to determining what types of coverage you need for your business. By taking the online survey, you can identify liability issues you need to cover for your business. You can get results immediately or have more in-depth answers sent to your e-mail address. Nationwide Insurance has a similar link to identify and assess the risks associated with your specific line of business.

Supplement your company liability insurance coverage with appropriate auto coverage

Even if your employees possess their own auto insurance coverage, if they use a vehicle during company hours for business, you need to provide auto liability coverage. Your coverage can be as simple as adding an extra insured driver, but be sure to protect your business assets with the right insurance coverage. If an accident happens, your business can be held accountable.
Try: Although having only the minimum coverage isn't recommended for a business, you can check Insure.com to make sure you and your employees have at least the minimum required coverage for your state. Progressive Insurance provides a checklist outlining the circumstances under which you need business versus personal liability insurance for your automobiles.

Plug holes in your general liability insurance coverage with endorsements

Make sure your business is completely covered with riders or endorsements to your corporate liability insurance. These can include directors and operators, errors and omissions, worker's compensation and even umbrella (excess) insurance coverage. Many of these have higher limits or cover events that your basic business liability policy doesn't cover.
Try: MSN Money offers an insurance evaluation to assess your business insurance needs, such as errors and omissions insurance, and makes recommendations based on your unique situation. For long-term reference, purchase a copy of "Commercial Liability Insurance" from the Insurance Risk Management Institute to compare your risks versus your coverage. This book discusses liability coverage and the gaps it can leave, and recommends other coverage to fill those needs.

 

• If you have a home-based business such as a home day care, your company liability insurance is normally excluded from your homeowner's insurance policy. Talk to your insurance agent about a special rider or endorsement to cover liability arising from a home-based business.

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