Liability insurance is one of the many popular insurance covers embraced by various businesses. However, there are different types. you need to know before going for it. This helps you to understand them and pick the best cover that suits your company.
Here’s a comprehensive guide on the different types of liability insurance and the risks each protects you against.
1. General Liability
It is popularly known as commercial general liability insurance. This type of insurance coverage protects your business against any property or bodily damage caused to others. Not only that, but it also takes care of the personal harm caused by your advertising campaigns.
Unfortunately, general liability insurance doesn’t cover your business and employees’ property damage. And these are covered by commercial property insurance. So, some of the risks covered by general liability insurance are summarized below:
• Property damages and bodily injuries of others.
• Advertising errors like copyright infringement. For example, if your company uses a copyrighted photo in its marketing campaigns without permission.
• Reputation harm such as libel, wrongful eviction, violation of privacy, and malicious prosecution.
Professional liability insurance coverage is also termed as errors and omissions insurance. It covers your company against any errors involved in the provision of its services. Let’s say you own a business consultant firm. And one of your clients claims that you provided him or her with the wrong financial advice that led to a financial loss.
This type of insurance cover saves you from such situations by covering the legal defense costs and some of them are:
• Administrative costs like written testimonies, customer waivers, medical records, and business receipts
• Court Costs
• Attorney fees
• Settlements and judgments
So, if you are in the service industry and you provide professional help to different people, then you need professional liability insurance coverage. You just have to identify an ideal insurance company with the best package.
3. Employer Liability
General and professional liability insurance covers don’t take care of your employee’s welfare and here’s where employer liability comes in. It provides benefits to your workers if they fall ill or get injured at the workplace.
As a matter of fact, in some states, you are required by law to protect your employees by insuring them. However, even if it is not the case in your state, insuring your workers is good for your company in many ways, such as:
1. Takes care of the medical costs of your employees.
2. Protects your business from lawsuits arising from employee work-related injuries.
3. Disability benefits if your employee is permanently or temporarily disabled.
4. Missed wages when the employee needs to rest to heal from an injury while at work.
5. Funeral costs if an employee dies because of a work-related accident.
Choose the Best Fit Type of Liability Insurance
Before going for any cover, includingnonprofit general liability insurance, it is important to know how it works. The best thing is to check the package of the insurance company and confirm if it is what your business needs.
