Basics of Business Liability Insurance

Some business owners may be mistaken in believing that a basic commercial insurance policy is adequate without considering liability insurance for businesses. This type of insurance is necessary when protecting your company, employees and customers, but understanding the basics of this coverage is essential when making the investment.

Anyone you come into contact with through your company, including those who are simply visiting your commercial property for a delivery or an unrelated repair can hold you responsible for their safety should they be injured or encounter property damage while on your premises. There are two types of liabilities that business owners are to take into consideration, those of outside people and members of your company, including partners and employees.

A general liability insurance plan, sometimes called a comprehensive general liability policy, will often cover nonmembers including payments due to injuries or accidents that occur on your property, medical expenses throughout the accident and recovery process, attorney fees and expenses associated with investigations and settlements as well as court costs. It is important for business owners to understand that limits are typically determined on a per person or per accident basis

CGL policies do not protect against all possible liabilities, so additional coverage may be necessary. Liability caused by an auto accident while working may not be included in a basic commercial policy, and a separate plan may be needed for liability related to products or services provided by your company. It is also important to have a basic understanding of your workers’ compensation insurance, as some liability may be included in laws depending on the state you operate in.

Most commercial insurance providers have add-on policies that can help optimize your coverage and protection regarding liabilities.