Types Of Business Liability Insurance

Types Of Business Liability InsuranceIn this present age, many businesses face a number of shortcomings. Let’s say for instance that you wake up one morning and find that a fire or a flood has impacted your business premises and damaged all your merchandise. This can be very frustrating, especially if you have not acquired business insurance to safeguard your business from such calamities.

According to a research study that was carried out in the US, 80% of the businesses in America are either partnership businesses or sole proprietorships. Regardless of the nature or size of the business, there are certain fundamental decisions that must be made and these decisions determine how far your business will grow. Many successful business owners will agree that it is imperative to assess the risk involved in that business and take the necessary measures to safeguard it from such risks. Purchasing business liability insurance is one of the ways you can safeguard your business from a lawsuit, property damage or accidents caused to your employees or clients in your premises.

There are several kinds of business liability insurance, including the following:

1. Commercial General Liability insurance: This policy is also referred to as general liability insurance. This coverage is designed to safeguard your business from injury claims, property damages and advertising claims. Nevertheless, it is important to classify the risks that are associated with your business before buying this policy. In this policy, the insurance provider is referred to as the insurer while the business owner is the insured. If a client files a claim against the business, then the insurer will cover the general liability while the business owner will pay for all the legal expenses incurred.

2. Professional Liability Insurance: This coverage is also known as the error and omissions liability policy. It is purchased by professionals such as lawyers and doctors, among others. In the US, it is mandatory for doctors to acquire this policy. It is designed to safeguard the professional from any financial loss if his or her client files a complaint against a service offered.

3. Product Liability Insurance: This is specially designed for importers and small scale manufacturers of all types of goods. If a client files a case because he or she was injured or affected by the products you manufacture or import, then this policy will compensate the client.

These are some of the most common business liability insurance policies. Before buying any of the discussed policies, it is important to visit various online providers and compare their rates to find a reliable company with reasonable premium rates.

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