What Is Low Cost Business Liability Insurance?
Liability insurance is needed by all business establishments; however, smaller businesses are often more prone to the disaster that is caused by errors they are liable for. For those small businesses, this insurance is necessary, but many of them certainly cannot afford its expensive price. Luckily, low cost business liability insurance is now available. They can now protect their asset without having to make a big financial sacrifice.
Why Is It Necessary?
All businesses need a protective cushion when they bump into accidents they are liable for. If such accidents carry costly consequence, their saving is their most practical cushion; but using their saving to cover costly emergencies may cause disaster to their finance. They thus need another type of protection that they can rely on when sudden crises occur—a kind of protection that doesn’t cause serious problem to their finance. This is where business liability insurance plays its role. This insurance protects businesses from all unexpected crises that occur when they conduct their daily operations. With this insurance, liabilities will not be too unruly to deal with.
What Does Low Cost Business Liability Insurance Cover?
As the name implies, business liability insurance provides coverage to liabilities. In their day-to-day operations, businesses may have to be liable for accidents that take place in their premises. If their customers or clients sue them for an injurious accident that occurs in their facility, for example, they can rely on this insurance to cover all expenses that must be made to settle the problem. The insurance will cover all costs related to the lawsuit and the compensation that must be paid if the court verdict is in the plaintiff’s favor. By relying on this insurance, no business asset needs to be sacrificed. This is the reason why this insurance is also referred to as asset protection insurance.
Because business can take different forms, this insurance can be tailored to meet the specific needs of every specific business. Based on the type of business it protects, business liability insurance can take the following forms.
1. General liability insurance
General liability insurance protects the insured from all liabilities that may put their asset and reputation at risk. A company often has to deal with allegations that are brought by parties who suffer loss in its premises, including employees who are injured while working, customers who are injured by its employees, customers whose property is damaged by its employees, and other companies and people whose reputation is damaged by its advertisements. General liability insurance provides coverage to liabilities that arise from those problems.
2. Professional liability insurance
Professional liability insurance provides coverage to companies and professionals who provide service to their clients. Doctors and lawyers will receive its financial coverage if they are accused by their patients or clients for malpractice. Any liabilities that arise from errors that occur when they carry out their day-to-day works will be covered by this insurance.
3. Product liability insurance
If an allegation is brought by a customer because a faulty product has contributed to his or her injury or death, the seller or manufacturer of that product is eligible to receive coverage provided by this insurance.