Every company should have liability insurance – but what police boundaries are right for your company? A lease or contract may require liability insurance with a certain limit. For guidance, it is recommended that you talk to an experienced insurance agent. Many business owners should have higher limits than the coverage required for a lease or contract.
What type of business liability insurance do you need?
General liability insurance is available for all types of companies and in several forms, including:
How much general liability insurance should we buy?
Your business has inherent risks. If you manufacture or sell a product, you must be insured against the risk of damages. If a consumer claims to have been harmed by your product, or if the company is accused of false advertising, failure to warn or any other legal issue related to your products, your defense costs will be covered.
When determining the policy boundaries that are right for a business, several factors need to be evaluated.
- Claims of personal injury: A customer, seller or visitor to your facility may be harmed on your property and apply for reimbursement of damages. Your general liability insurance should have an insurance limit that covers a valuable claim for bodily injury.
- Legal and court costs: Even if a lawsuit is filed against your business without merit, you will need a qualified lawyer to pay for your legal representation and court costs. Your general liability insurance should cover the costs of defending against a claim or lawsuit.
- Property Damage: If one of your employees causes property damage, your company will be held liable. Your business liability insurance should cover the cost of paying for damages related to your business, either internally or caused by an employee performing work-related tasks outside the facility.
- Medical payments: If an employee, visitor, or salesperson is injured at your facility, a claim or lawsuit may be filed to pay for medical treatment. Your general liability insurance protects against this eventuality.
- Advertising requirements : Your company may have legal consequences if another party sues you for incorrect use of an image or false advertising.
- Slander, Libel or Defamation: A lawsuit may be filed against your company if another party claims that you or one of your employees has reduced their professional status due to libel, slander or libel .  Choosing the Right Liability Insurance
Your general liability insurance should provide maximum coverage at a price that fits your budget. Talk to one of our experienced agents to help you find the best policy for your business.