Liability insurance is essential coverage for small business owners. It helps protect you from claims that your business caused bodily injury and property damage. The importance of liability insurance is that all companies face claims that may arise during normal operations. Every business owner should have an asset protection plan that is based on available liability insurance coverage.
Keep in mind that if your general liability coverage doesn't apply to these situations, you can appeal. At the other extreme, having general liability insurance can greatly increase trust and open the door to new and larger companies. If your company regularly stores customer information, including names, addresses, and social security details, it's essential to have a general liability insurance policy. Liability insurance does not cover intentional or criminal acts, even if the insured is declared legally responsible.
On the other hand, professional liability coverage is something you might want to consider including in your insurance or purchase separately. If you regularly submit offers for large contracts, having a general liability insurance policy in place could help you close more contracts. While commercial general liability insurance protects against most legal problems, it does not protect directors and officers from being sued, nor does it protect the insured against errors or omissions. Business owners are exposed to a range of liabilities, any of which can subject their assets to substantial claims.
However, sometimes you may need to add a special provision, or even a separate policy, called personal liability coverage. Personal liability insurance is considered a secondary policy and may require policyholders to have certain limits on their home and auto policies, which can result in additional expenses. A company that lacks CoverWallet's general liability insurance could lose everything if it had to pay judgments, court payments and legal bills. Liability insurance is essential for those who are responsible and guilty of injuries suffered by others or in the event that the insured party damages another person's property.
Auto liability insurance is another form of liability insurance that covers damage to other vehicles or property caused by accidents related to your vehicle.