You work hard to build your business, but one unexpected incident can put it all at risk. Even if you follow all regulations and strive to create a safe environment for employees and customers, there’s always a chance that human error or bad actors will make your company vulnerable.
Fortunately, business liability insurance protects you with the right policies.
What Is Business Liability Insurance?
All companies have a legal responsibility to protect employees and customers from harm. Harm can happen because of a faulty product, subpar service, neglected property, and even lax cybersecurity. Affected parties can pursue compensation through the civil court system.
Of course, if you do everything right, you don’t have to worry about this, right? Unfortunately, it’s more complicated. You must settle or go to court if someone accuses you of negligence. Even if you win, you must put time and money into your defense, resources you could’ve used to run your business.
Business insurance takes on this burden. The insurance company handles the legal process and pays for expenses, including a settlement. As a result, you get peace of mind and minimal business interruptions.
What Are the Different Types of Insurance?
Everyone wants to know how to find the best liability insurance. The truth is that “best” is a relative term, so you must understand the various types of insurance before determining which is appropriate for your company.
General Liability insurance is a must-have. These policies cover medical bills, settlement costs, and legal expenses resulting from the following allegations:
Your business caused property damage.
Your product or services injured the individual.
The individual sustained an injury on your property.
Your business harmed the individual’s reputation.
Professional Liability insurance is one of the most commonly sought policies because most businesses can benefit from it. It covers legal costs should your company make a mistake.
There are also more specific policies, such as Cybersecurity Liability insurance. Hackers target commercial enterprises to extort ransom or access sensitive customer data. A breach can put your customers at risk of identity theft, which can wreck lives. Cybersecurity liability insurance helps you recover by providing funds for the following:
Data monitoring services to prevent the use of stolen information
Public relations efforts
Security enhancement
Data recovery
Fiduciary Liability insurance is another specialty. These policies protect you from litigation levied by employees alleging the following:
Bad advice on retirement benefits
Misinformation about benefit enrollment instructions
Investment misrepresentation
Once you have a good overview of your options, you can request business insurance quotes to compare cost and coverage.
How Can You Determine What Business Liability Insurance You Need?
Premiums can add up fast, so it’s best to only pay for the necessary insurance. The first step is to identify legally required coverage. These regulations vary by state, and we can advise you on what is required in your state.
The next step is analyzing risk. For example, you may not need fiduciary liability insurance if your business doesn’t offer an employee benefits plan. However, cybersecurity liability insurance is essential to almost every business. By determining various levels of risk, you can choose the most cost-effective business liability insurance policies. We can assist in assessing your exposures and risks.
About Securance
From our home base in Texas, Securance serves the insurance needs of clients throughout the country and abroad. With 50-plus years as a trusted advisor to businesses, families, and individuals, we help clients safeguard their hard work and step confidently into the future knowing they are well protected. Contact us today at (713) 977-6606.
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