Learn About The Different Types Of Business Liability Insurance
Liability is a term, which encompasses all such negligent actions of a person, which can result in serious physical injury, financial losses or stress to another person.
Whether you are the proprietor of a small company or the owner of a big multinational company, your business is at a great risk and anyone can sue you at any point of time. You can be held accountable for some kind of negligence in your operations or injury caused to a third party in your business premises. Therefore, you need to safeguard and protect your business from any kind of liabilities by taking business liability insurance.
Taking up business liability insurance can be very advantageous for you as it can save you from paying a lot of money from your pocket towards compensation to a third party claiming damage. In case of physical injury to a person caused due to the products and services offered through your business, the business liability insurance looks after all the medical expenses as well ass reimburses the wages that were cut during the recuperation phase. Moreover, in case somebody files a lawsuit against your business, then the business liability insurance also pays for the legal cost.
Business liability insurance is of three types and you can opt for the one which meets the requirements of your business ?
The first type of business liability insurance is the general liability insurance, which is also referred to as commercial general liability. It offers the basic protection to your business against the most common liability risks, such as property damage claims, advertising claims or physical injury claims. It covers the legal costs for this kind of lawsuits filed against your company. The general liability insurance covers the claims made not only by your employees injured within or outside your office premises, while they are on an official duty, but also covers the injury claims of clients and customers within your property premises.
The next type of business liability insurance is the professional liability insurance, which is also known as the errors and omissions coverage. It covers businesses, which offer some kind of service to people, such as professionals functioning as financial analysts, technical advisors, stock exchange broker companies, doctors, or bankers, whose negligence, or errors can inflict serious injury, financial losses, or damage to someone who came to seek your services. In many countries and states, professional liability insurance is a must for independently working professionals.
The third type of business liability insurance is called the product liability insurance. This kind of insurance is meant for those businesses which repair, sell, or manufacture any products. The coverage costs pay for those claims which are made by people who have either been injured after using your products or whose property has suffered extensive damage after the use of your products. The coverage costs can vary from case to case, depending on the risk potential of your product and also depending on the degree of damage or injury afflicted to the person who has filed the claim.
Susan Reynolds is the content coordinator for a leading South African Insurance Provider who specialises in Commercial Insurance Policies.
