Liability insurance also known as Commercial insurance protects you in the event you are sued for claims that come within the coverage of your liability insurance policy. If you are a small business owner, there are many reasons why you should learn more about what commercial insurance means to you.
What kind of insurance is best for your small business?
The insurance you choose depends upon the details of your business. Some people choose professional liability insurance some choose general liability insurance and many select both.
General liability insurance also known as Commercial General Liability (CGL) protects your business from another person or businesss claims of bodily injury, associated medical costs and damage to property. Some examples of what could be covered are below:
- Bodily injury :A client falls over your bag and you are legally liable for the injury. We will cover the subsequent claim and related medical expenses up to your General Liability policys limits of liability.
- Property damage and data loss : You spill coffee on a client???s server causing damage and loss of data. We will cover the subsequent claim up to your General Liability policys limits of liability.
- Personal injury : One of your employees is at lunch. He talks to the owner of the shop about one of your clients in a false and unflattering way. The client learns of this discussion and sues for slander. We will cover the subsequent claim, up to your General Liability policys limits of liability, and pay for an attorney to defend you if necessary.
Professional liability insurance, sometimes called errors and omissions insurance (E&O insurance) is coverage for another persons claims against businesses that provide professional and personal services. Some examples of what could be covered are below:
- Protection even if you haven’t made a mistake: You advise a client to change some internal processes to increase productivity. The recommendations aren’t implemented as you had specified and productivity subsequently drops by 15% rather than improving. Or if you manage the development of a new product. There are problems with the project (which are out of your control) and you cannot deliver the final product in a timely manner. If your client sues you, we will appoint an attorney to defend you under a Professional Liability policy.
- Negligent acts :You advise a client to update their employment practices. Six months later, your client contacts you, stating a part-time employee is suing the company. You had left out a key requirement on the amount of hours part-time employees are permitted to work. If your client sues you, we will appoint an attorney to defend you under a Professional Liability policy.
Business Owners Policy (BOP) is a combination of general liability and business property insurance.
Business Owners Policy (BOP) insurance is often used to provide balanced coverage for small businesses who also want to protect their own business equipment. Some examples of what could be covered are below:
- Office insurance for fire and business interruption.
- Electronic data loss insurance.
- Hired or non-owned vehicle liability insurance.
- Commercial Crime insurance to cover the dishonesty of your employees.
Occurrence vs Claims Made