I was researching on the different types of insurance such as medical insurance and I came upon liability insurance. I wasn't really sure I knew much about it so I dug deeper.
Business liability insurance is actually a protection for your business from lawsuits or property damages. The liability coverage insurance takes care of the damages and the legal costs. But liability insurances come in different forms and you can purchase any one of them or all of them if they fit your business needs:
General Liability Insurance
- The general liability insurance coverage is the main coverage for any type of business. It offers protection from injury claims, advertising claims and property damages. But as part of the general liability insurance cost, there is a maximum limit that they're willing to pay. The rest will have to be shouldered by the company.
Professional liability insurance
- This type of insurance is best for businesses that offer services. This is also called errors and omissions liability insurance which protects the business against malpractice, errors, omissions and negligence.
Product liability insurance
- This type of insurance is best for businesses that are selling or manufacturing products. They need this insurance to protect them in cases where in a person has become injured or sick as a result of using the products manufactured and sold. However, this insurance depends on the level of risk that your business is exposed to. Naturally, a wood stove builder will have more risks compared to a retailer of book supplies.
I got a new, profound knowledge regarding liability insurances and I have my research to thank for that.