Yes, every business even a small-sized or large, must insure a business liability insurance. Because anything can happen or go wrong anytime, anywhere. About 78% of all U.S. businesses are structured as a partnership or sole proprietorship, this form of ownership puts your small business and personal liabilities at risk. Getting rid of financial ruin and protecting your business and personal life can be done by owning a business liability insurance.
You can be personally liable for the issues like, signing a personal guarantee for loan or giving security, injuring someone by unexpected misfortune, acting irresponsible or illegal, not operating business as separate entity. There are basically three types of business liability insurance:
General Liability Insurance: This type of business liability insurance is the important coverage to protect your business from injury claims, property damages, etc. General liability insurance also known as Commercial General Liability is one of the best types of business liability insurance you need depending on your business situation.
Professional Liability Insurance: Business owners providing services will need to consider having professional liability insurance for errors and negligence claims. This coverage mainly protects your business against malpractice, errors, negligence and omissions. Depending on your profession, it may be a legal asset to carry such policy. For instance, doctors require liability coverage to practice in certain states. Technology consultants most often need coverage in independent work arrangements.
Product Liability Insurance: Small businesses which are producing and selling products should be protected in the event of a person becoming injured as a result of using the product. In this type of liability insurance, the amount of coverage and the level of risk depends on your business type. A retailer of scrap book supplies will have low risks than a wood stove builder.
So, it is necessary to consult your insurance agent for the appropriate liability insurance and coverage you need for your business.
You can be personally liable for the issues like, signing a personal guarantee for loan or giving security, injuring someone by unexpected misfortune, acting irresponsible or illegal, not operating business as separate entity. There are basically three types of business liability insurance:
General Liability Insurance: This type of business liability insurance is the important coverage to protect your business from injury claims, property damages, etc. General liability insurance also known as Commercial General Liability is one of the best types of business liability insurance you need depending on your business situation.
Professional Liability Insurance: Business owners providing services will need to consider having professional liability insurance for errors and negligence claims. This coverage mainly protects your business against malpractice, errors, negligence and omissions. Depending on your profession, it may be a legal asset to carry such policy. For instance, doctors require liability coverage to practice in certain states. Technology consultants most often need coverage in independent work arrangements.
Product Liability Insurance: Small businesses which are producing and selling products should be protected in the event of a person becoming injured as a result of using the product. In this type of liability insurance, the amount of coverage and the level of risk depends on your business type. A retailer of scrap book supplies will have low risks than a wood stove builder.
So, it is necessary to consult your insurance agent for the appropriate liability insurance and coverage you need for your business.
No comments:
Post a Comment