Do you own or operate a business? If so, you need to take a moment to review any commercial insurance policies your business has. Perhaps you are a small business owner who does not even have insurance. You may mistakenly think that you cannot afford it, or you may feel as though it is an unnecessary expense. Take a moment to think how your business would suffer if you were sued and the other party won a judgment against your business. The following points will help you to understand the different types of liability insurance policies that businesses can choose from.
General Liability Insurance
Almost all businesses need this type of insurance at a minimum. It is ideal for protecting business owners against claims of injuries or property damage. Even if you have a home office and work from home, you may need general liability insurance if you have clients that visit your home office.
Errors & Omissions Insurance
This type of insurance can protect your business against claims that pertain to the quality of services performed. It is essential when there is a possibility that a client could sue you for shoddy work or bad professional services. Your policy will be based on your industry and tailored to ensure it covers many types of potential litigation issues individuals in your industry could face.
Directors and Officers Insurance
Some businesses have board members and directors. These individuals generally make important decisions in their respective companies. This does not mean that their decisions are always correct or that they may not be challenged in a lawsuit. This type of policy protects these decision makers and the integrity of the companies they represent. These policies are available to profit and non-profit organizations.
Professional Liability Insurance
This is a type or errors & omissions insurance. It is ideal if you have employees because it will cover any accusations of damages and errors made by them or you.
This type of policy can be considered as an "add-on" policy. This is because it can not be purchased as a sole policy. It must be purchased in addition to one of the other types of policies. Consider it as additional coverage. This is ideal if you want to ensure that you have the maximum coverage in the event that an injury, property damage, or other claim is made against your business.
A commercial insurance agent or broker is a good resource to use to determine what type of liability insurance your business needs. There are a number of factors that will impact the type of policies different businesses may need.