A Guide to Small Business Liability Insurance

As a small business, having a claim filed against you could be detrimental. Because of this, you should be investing in small business liability insurance. This comes in all forms, so deciding which insurance company to choose should be based on the insurance you’ll need. Often times, the business that a company does makes it liable for various types of lawsuits, and you should cater your options to your weakest spots.

Small business liability insurance offers a range of coverage for your company. You should consider purchasing General liability, professional liability insurance, product liability, public liability and/or employer liability. Now, while you may not need every single one of these, it is a good idea to see if any companies offer a discounted package deal. Having more than one can cover you in any case. This is safer for your company, your budget and employees involved.

General liability insurance will cover you on the most basic claims. From personal or bodily injury to advertising liability such as libel and slander, you will be insured. The coverage pays for any defense charges and court fees incurred. As a business, any of these can become a problem, as a claim can be filed by customers, stock holders and employees. Having this basic coverage will ensure that you have fundamental protection against true or often fraudulent claims.

Professional liability insurance is a good addition to general liability. This is also known as errors and omissions insurance. This coverage is good for a business that works heavily with customers or in the service industry. In the case of an employee giving misleading advice, showing negligence or not meeting customer expectations, all defense and court fees are covered. Industries where this would be very important include, but are not limited to, construction, software, and medical. These professions leave much room for customer complaints which can turn into legal claims.

Employer insurance is the third most important insurance. In the case of employees slipping, falling or hurting themselves at work, your business can be thrown into the mix. Employees can claim that the business was at fault for their injury. In this case, you are financially protected against any allegations.

Finally, it is most important to have public liability insurance. In the case that a customer or client falls on the premises you are protected against their claim. This will also cover you in the event that someone’s car or bike is stolen or damaged on your property. However, this only covers lawsuits from customers, which leaves out employees and shareholders.

As you can see, each type of small business liability insurance covers a different aspect of your business. Because of this, it’s important to get a bundled package. In the case of a lawsuit, regardless of who files it, you don’t want to be caught up in expensive fees and charges. When you begin your search, please feel free to click through our list of insurance merchants already approved by the professionals at Business.com.