Liability insurance is an important business insurance policy that protects you from a wide range of potential claims. These claims can include lawsuits, medical expenses and property damage.
There are many types of liability insurance, each one designed to cover a different risk. Learn about the coverage you need to protect your business and what to look for when choosing a policy.
Professional liability insurance
Professional liability insurance, or E&O insurance, protects small business professionals like doctors, lawyers, accountants, and architects against the risk of financial loss due to errors or omissions. It covers the cost of legal fees, court settlements and judgments, licensing board penalties, and other expenses incurred as a result of a claim.
Typically, policies are “claims-made,” meaning they must be in effect when the event and lawsuit take place. Alternatively, you can purchase an “occurrence” policy that will cover any qualified claim arising from an incident that took place while the policy was in effect.
The type of professional services you provide, and the scope of your expertise, will determine which kind of coverage is right for you. For example, medical malpractice coverage is ideal for doctors and nurses who specialize in providing care.
Public liability insurance
Public liability insurance is a type of liability coverage that protects your business against claims of bodily injury and property damage. It’s a basic layer of protection that’s often purchased by companies that interact with the general public on a regular basis, such as shops or restaurants.
It also protects businesses that go into customers’ homes or offices, such as tradespeople.
While this type of liability cover is less common than commercial general liability, it’s still important for businesses that need to provide protection against potential claims and lawsuits.
It can be difficult to know when and if you need liability insurance, so it’s important to speak with an experienced broker who can help you determine the appropriate level of coverage for your needs. If you’re unsure, get in touch with one of our advisors for a free eligibility check. They’ll be able to explain your options and help you choose the best policy for your business.
Personal liability insurance
Personal liability insurance is part of a homeowners, renters or condo policy and protects you from financial harm when you or a member of your household causes bodily injury or property damage. It can pay medical bills and legal fees if someone sues you for negligence.
Typically, your personal liability coverage will start at a base limit and can be increased for additional premium. For extra protection and peace of mind, umbrella coverage can be added to your existing policy to increase the amount you’re covered for.
In addition to covering physical injuries or property damage, personal liability coverage can also pay for lost wages and pain and suffering. This means that you can help a visitor who falls down your stairs or hurts their shoulder on your patio, for example.
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