You think to yourself, “my business needs liability insurance.” Here’s the caveat, there isn’t a generic or one-size-fits-all approach to ” business liability” insurance. There isn’t one form of liability that will cover all of your needs.
Don’t get caught with your business pants down.
Every business should have a General Liability policy. It is the starting point for all business owners.
General Liability will provide coverage should you cause bodily injury or property damage to a third party.
Also known as Errors and Omissions Insurance.
Dentists, lawyers, Realtors, architects, engineers, financials planners are all examples of professions that need a Professional Liability policy.
This offers coverage if you were found negligent in your professional services or the advice that you offer. Generally this will be related to a financial loss.
For instance, a consultant may face a lawsuit for giving bad advice which results in a financial loss to his/her client.
READ MORE: Personal Auto vs Commercial Auto Insurance
Does your business rely on the internet?
Both your customers information and your business’s information could be at risk.
We are living in the times of the Wild West when it comes to Cyber Liability. Find out if you have it and the impact it could have on your business if choose not to have it.
Employment Practices Liability
Do you have employees?
Should an employee ever accuse you of sexual harassment, wrongful termination, discrimination (just to name a few); Employment Practices Liability will provide defense costs.
Directors and Officers Liability
If your organization has a board that makes decisions on behalf of your organization Directors and Officers Liability is a must. D&O protects the board members for the decisions they make guiding and advising your organization.
This is a common coverage for non-profits. It’s not out of the question for a for-profit business to need D&O.
Mechanics, body shops, dealerships are all examples of businesses that need a Garage Liability policy.
A Garage Liability policy has the components of General Liability policy. Meaning it will cover you if you cause bodily injury or property damage to a third party. Plus it has the needed liability coverage to take on the daily operations of a mechanic or body shop.
So if one of your employees fail to tighten the lug nuts on a customers car and that wheel falls off, causing an accident…Garage Liability will extend to these types of unique situations.
Commercial Umbrella Liability
In a nut shell, this is an additional layer of liability. Often times it is designed to go over and above your General Liability, Auto Liability, and Workers Compensation. In some situations it may go over other types of Liability mentioned in the post.
Do you sell or serve alcohol? If you answered yes, you need to give this a hard look.
If you’re ever accused of bodily injury or property damage due to a hazardous waste you’re going to wish you had Pollution Liability on your team.
Employee Benefits Liability
Let’s say you forget to add Sally to your Group Health Insurance plan. Sally goes to the doctor and makes a claim. Your Group Health Insurance denies the claim because you forgot to add her to your Group Health Insurance policy. Now Sally is looking to you to take care of the related financial mess.
Employee Benefits Liability would apply to Group Life Insurance, Group Disability Insurance, employee retirement plan, etc.
Commercial Auto Liability
Does your business make money using one or more autos? There is a significant difference between Personal Auto Insurance and Business Auto Insurance. The cheapest isn’t always the best option.
Wrap It Up
I’m sure I’m missing some form of Liability. The point is your business may require different types of Liability insurance. You business may need multiple forms of Liability coverage to avoid gaps.
The point is you’ve taken time to build your business. Now take the time to protect it.