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Information on Liability Insurance
Owning and running a small business is an exciting venture to partake in, but it warrants responsibility and accountability. The most vigilant and upstanding business owner can be met with customers and associates who think the business has done them wrong. The best safeguard for your business is liability insurance. Having liability insurance protects your business and personal life from financial harm.
You can be personally liable if:
- You have signed a personal guarantee for a loan
- You have injured someone
- You acted in an irresponsible or illegal manner
- You do not operate your business as a separate entity
DefinitionBusiness liability insurance protects your business if a lawsuit is filed concerning personal injury or property damages. Depending on the severity of the case, it will cover damages and legal costs.
TypesGeneral liability insurance or commercial general liability protects your business from injury claims, property damage, and advertising claims. Professional liability insurance protects your business against malpractice, errors, negligence, and omissions. Product liability insurance protects your business in the event a person becomes injured due to using your product.
Tips for finding a providerSome trade associations and groups provide suit members with the opportunity to get group rates for liability insurance. Rates for liability insurance range from vendor to vendor, so it is necessary for your business to receive multiple quotes in order to find the right match for your business. Know your field. Talk to others in your industry, find out how vital it is to have, and discuss actions taken with other owners. Attempt to buy a complete package from one vendor. It can become costly to purchase several types of liability insurance from varied vendors. Incorporating a broker may be a good idea in shopping for liability insurance. They will have experience and will know your industry well.