Ideally, business liability insurance protects your business’s financial interests in the event of a formal lawsuit or third-party claim. The policy covers legal defense expenses, as well as any direct financial liability your company or business may incur. Notably, every business needs to have business liability insurance, including businesses that run from home.
As a business person, you hope that you never have to fill out an insurance claim. However, you might have to at some point. When that time comes, all you need to do is file a claim with your insurance provider. A claims adjuster will then reach out to you to confirm details of the incidence and review your policy with you. The adjuster could evaluate the extent of the damage right away or involve experts for more insight. Finally, they will make arrangements for repairs, settlement, and any other payment to your business.
As an entrepreneur, you need to anticipate risks and protect your business against their adverse effects. One way of doing so is getting business liability insurance, which helps cover a wide range of claims. These include:
Among others, these are the main types of business liability insurance:
1. Professional Liability Insurance
Professional liability insurance provides cover to your business in the event of a client suing you for making a mistake when rendering a service.
2. Product Liability Insurance
Product liability insurance protects your business from the fallout that follows if a product causes injury to third parties.
3. General Liability Insurance
General liability insurance will provide cover to respond to a claim that your business caused bodily injury or property damage.
Why Get Business Liability Insurance?
By starting a business, you inherently get exposed to liability. In some cases, third parties might file claims against your company, which could escalate to expensive lawsuits, regardless of whether you are guilty or not. However, business liability insurance covers you from such expenses. So, besides saving your business money, getting business insurance helps you stay on the right side of the law.
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