Liability insurance is an insurance product that provides protection against claims resulting from injuries and damage to other people or property. Liability insurance policies cover the legal costs and payments that the insured party is responsible for if declared legally responsible. Intentional damage and contractual liabilities are usually not covered by liability insurance policies. General business liability is a form of business insurance that covers injury, illness, and property damage claims against your company.
It's a term used primarily for policies in the United States. In the United Kingdom, this coverage is more widely known as “business liability insurance” or, separately, as “liability insurance” and “product liability insurance”. You may need other types of liability insurance for your small business to cover coverage gaps. If you want coverage for stolen business equipment, such as computers, tools and equipment, you'll need a commercial property insurance policy.
Personal liability insurance covers individuals against claims that result from injuries or damage to other people or property suffered on the insured's property or as a result of the insured's actions. There may be circumstances where you need to prove that you have general liability insurance when signing a contract or applying for a license in specific states. General liability insurance may be required for some types of professional licenses, such as plumbing or electrician licenses. Whether you're taking out general liability insurance as a standalone policy or as part of a BOP, you'll want to compare commercial insurance quotes from several insurance companies.
Corporate liability insurance, on the other hand, protects the financial interests of companies and business owners against lawsuits or damages resulting from similar accidents, but it also covers product defects, recalls, etc. For more information on general liability and other business insurance solutions, contact an independent Travelers agent. You can manage the costs of general liability insurance by choosing the insurance limits that best suit your needs. Without business liability insurance, your LLC would have to pay the high costs of legal defense, judgments, and settlements.
There are also some circumstances where you'll need to prove that you have general liability insurance, such as applying for a license in your state or signing a contract with a customer. Finally, property management companies may require you to have general liability insurance before renting space to you. A general liability insurance policy is basic coverage for your small business, but it doesn't cover problems such as theft, vandalism, fire, adverse weather conditions and loss of income. Personal liability insurance is considered a secondary policy and may require policyholders to have certain limits on their home and auto policies, which can lead to additional expenses.
General liability insurance can cover you in the event that a third party is injured while you are working or if someone else's property is damaged as a result of your work.
