Business Liability Insurance – Types and Importance

Many businesses, especially small businesses, ignore the need of business liability insurance. Though, they take all measures to protect their businesses against risks by taking insurance for physical assets like buildings, stocks and goods, they do not consider protecting their businesses against various possible liabilities they may face. Protecting against all the possible kinds of liabilities is of great importance to a business, given the severity of damage they cause to the business’s reputation, finances and survival.

This article will help you know the various types of insurance policies available and their importance for a business.

Types of business liability insurance
Business liability insurance helps small business owners to secure their businesses by protecting against liabilities like public liability, employer’s liability, professional liability and product liability. Depending upon the type of business you are in, you should purchase the suitable insurance. Following are some of the prime types of insurance suitable to small businesses.

• General liability: This insurance is helpful to small businesses in protecting the owners from claims of liability raised due to property damage or a physical injury caused to the general public, employees or customers resulting from the operational negligence in course of the business. This insurance protects you by compensating for the medical expenses of bodily injuries caused to a person. It also protects you against claims of damage to the third party’s property.

• Professional liability: If you are a software consultant, plumber, chartered accountant or any such professional offering your service for price, the probability of facing professional liability is high. Professional liability protects professionals from risks of liability resulting from loss of data, claims involving malpractice, say, copying of data, breach of confidence, accidental loss of data or inadvertent mistake by your employee. The cost of litigation is too high in these cases and this insurance takes care of those expenses.

• Product liability: When an individual gets injured by using a defective product that you have sold or manufactured, law suit can be filed by this individual against your business. Product liability protects your business from such liabilities by taking care of all the legal hassles and the compensation claims.

Importance of business liability insurance
Business liability insurance protects your business from various liabilities. It is, however, advisable to check the suitability of the insurance with respect to the amount of coverage and the risks involved in the business. Let’s discuss its importance:

• Protection against claims resulting from injuries, damages and malicious ad: Business liability insurance protects your business from liabilities involving bodily injury caused by the operations of your business to any of your customers, employees or general public.

Likewise, if your business causes damage to property, say, while displacing the inventory from/to the warehouse to/from your business, there is high probability that you would face liability for property damage.

Personal injury cases arise when any of the employees gets injured while on job. This insurance protects you against the risk of liability when one is injured in course of the business, say, in accident. In such a case, the insurance protects your business, by compensating for the medical expenses incurred in the treatment of the person.

Another risk is a business advertisement that unintentionally causes resentment. A malicious advertisement brings forth litigation against your business. The insurance protects your business, by awarding the suitable compensation to the aggrieved party in case of such litigation. It also compensates for the litigation expenses.

• Legal fees and medical bills: Business liability insurance finances the medical expenses involved in the treatment given to the injured and the expenses involved in litigation. Even the insurance lawyer would represent you in the court, in the instance of inability to attend the court hearing.

Business insurance is, thus, important to protect your business against various liabilities. It is, however, significant to choose appropriate insurance policy – right cover and the right type taking into account the risks of hazards in your business. Both, inadequate or excess insurance coverage can cause financial loss to your business.

Driver Liability Insurance – Get the Coverage and Protection You Require

When talking about driver liability insurance, it means a policy that protects the policy holder against any claims of negligence, bodily injury, property damage and personal injury. Liability insurance pays on behalf of the insured for certain types of injury to other. All states require some form of driver liability insurance for those who drive.

In every state, they have different requirements when talking about liability but some state requires having liability car insurance since every state has financial responsibility laws which require every individual to have sufficient assets to pay for any liability one must cause in an incident and this is for every individual good.

Other state will not allow you to register your car without any insurance policy as proof that you have liability insurance while some state will only ask proof of liability auto insurance when driver’s has an accident. But most of the state requires driver to have liability insurance since accident may occur any time unexpectedly.

The law requires minimum purchase of liability auto insurance but it’s up to you if you think you can afford to have the full coverage, then the better. If you seldom drive a car, you can have the least sufficient liability.

If ever you don’t own a car and just renting or borrowing car to drive, then have the non-owner car coverage which provide the mandated liability insurance on the driver’s name and financially protects and cover you in the event of bodily injury liability coverage, property damage liability coverage, uninsured or underinsured motorist protection, medical payments coverage and legal fees where it is applicable.

No matter how good driver you are, but still accident comes since it’s not in your control. So better to play safe and buy driver liability insurance. As a driver, having driver liability car insurance is reasonable enough to have peace of mind.

In some states, drivers are required to carry their liability car insurance in order to drive a motor vehicle or car although there are still many people who drive car without any insurance coverage which is risky.

Business vehicles, buses and personal cars for sure had their vehicles insured as well as the driver for liability car insurance. If you find your car as part of your life, then how much more the person who drive the car. Some business vehicles had their vehicles insured and let the driver get their own driver liability insurance.

Some company or business vehicles authorized one or two person to drive their company car and if some of your employees want to drive the company car, you should tell the employees the term and condition in using the company’s car. Your agreement with the employee must be specifically outline the rules for the company car.

Many drivers don’t want to purchase drivers liability car insurance because for them it is expensive. If you are determine to have driver liability insurance, and then you have to shop around for the cheapest liability auto insurance since the law did not required you to purchase the expensive liability insurance. Just to have peace of mind and to play safety since accident can come anytime without your knowledge.