If you open the newspaper or turn on the news, it’s not uncommon to hear of someone suing someone else. Unfortunately, in today’s world, lawsuits are a part of every day life. That’s a scary though. Ever more so if you are a business owners. What if someone falls in your parking lot? Or what if something falls off your a shelf and hits a customer? While you take every precaution to make your store safe and inviting to customers, you can’t always predict every risk. That is why you purchased business liability insurance. To help protect your business and you livelihood.
What does Business Liability Insurance cover?
Business liability insurance (also known as commercial liability insurance) protects your business from damages caused by bodily injury or property damage for which your business is found to be legally liable. A typical business liability insurance policy provides coverage for claims of bodily injury or other physical injury, personal liability (libel or slander), advertising injury and property damage as a result of your products, premises or operations. It can be offered with other coverage such as property, crime, automobile and more.
These policies also have a safeguard against liability. This allows you to continue your normal operations while dealing with real or fraudulent claims of negligence or wrongdoing. Policies also provide coverage for the cost to defend and settle claims. Other typical coverage’s may include?
- Automatic additional insured: Coverage is provided for written contracts, agreements and permits.
- Personal and advertising injury: Protects against offences made by you or your staff during the course of business, such as libel, slander, disparagement or copyright infringement in advertisements.
- Defense costs: Provides coverage for legal expenses for liability claims brought against your business, regardless of who is at fault.
- Medical expenses: Provides coverage for medical expenses if someone is injured on your premises or by your products.
- Premises and operations liability: Provides coverage for bodily injury and property damage sustained by others on your premises or in conjunction with your business operations.
- Products liability: Provides coverage for bodily injury and property damage sustained by others as a result of your products.
How much coverage does my business need?
The amount of coverage needed varies from business to business. A few thought to keep in mind include:
- Perceived risk: Consider the amount of risk associated with your business operations and functions. For example, if you manufacture heavy machinery you would generally need more coverage than a business that manufactures stuffed animals.
- Premises and operations liability: If you operate in a state that has a reputation for rewarding high damages, then you may wish to purchase higher limits of liability.
- Type of product manufactured: If you manufacture a dangerous product, you may want to carry higher limits of liability.
In addition to a business liability policy, you can also purchase an Umbrella Liability policy to give you higher limits of liability.
Other ways to protect your business.
In addition to insurance, there are steps you can take to help protect your business from liability exposures. Establish a high standard for product quality control at your business. Keep all company records up to date and accurate. Train your employees thoroughly and properly.
At Rinehart-Walters-Danner Insurance we understand your business needs to be protected. As an Independent Insurance Agency we have relationships with numerous companies. This allows us to tailor make the business insurance plan best suited to your specific needs. Contact an agent today to learn more about our risk management and insurance solutions.
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