Protecting Business Assets With Commercial Liability Insurance

By Author: Andrew Edwards
Total Articles: 125
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Owning and running a business comes with many responsibilities and accountabilities. Even if an entrepreneur operates with great care and provides the top quality products and services, clients can still perceive something wrong about the products. So, one need to have an insurance cover that protects the business from such things.

Who requires Business Liability Insurance?

According to some statistics, nearly 75 percent of US companies are structured as a sole proprietorship or partnership. For most of the business owners, such structuring puts the business liabilities or personal liabilities at threat. Owning Business or Commercial Liability Insurance secures both the personal life and business from financial wreck. A common misapprehension of an incorporated firm (or limited liability firm) is that the business owner is secured from personal liabilities and so there is no need of a liability policy. However, this is not completely true. A business owner can be personally accountable if –

 He or she has signed a personal assurance for some loan.
...
...  He or she has personally injured somebody.
 Acted in an illegal or irresponsible way.
 Does not run company as a separate body.

What actually is meant by Business Liability Insurance?

It is a type of business insurance which shields the business in any event of law suits for property damage or personal injury. It will generally cover the losses from a lawsuit including legal costs. Depending upon the needs of the company, this type of insurance can take different forms.

1. General liability cover – This type of insurance is the most important of all types, which protects a firm from – property damages, injury claims and advertising claims. It is also known as Commercial general liability cover.
2. Professional liability cover – Few business owners also consider buying professional liability insurance which covers errors, malpractices, omissions, and negligence. Depending upon the type of trade, this policy may be required by the prevailing state laws.
3. Product liability cover – This form of commercial liability insurance protects the businesses in the event of an individual becoming injured after using a particular product of that company. The level of risks and amount of policy depends upon the type of industry.

How to choose right insurance agency for business protection?

When selecting an insurance agency, make sure that it is economically stable. These agencies have ratings ranging from A + up to B -. Make sure that one selects a company that has a high ranking. One important tip to buy any of the commercial insurance cover is that try to get at least 4 different commercial insurance quotes from different companies. One would be surprised to see the difference that would occur in all these different quotes. Ask the broker or agent that what is included and what is not included in the policy, before signing the agreement.

About: - Business insurance provides protection not only to the companies, but also to the freelance professionals and other contractors. It provides a peace of mind and clients would have more confidence in the business.