Liability Insurance for Your Small Business

E very small business faces some unique risks. Fortunately, having a general liability insurance can protect your business against many of the risks associated with third-parties. It is also known as commercial liability insurance or business liability insurance.

What Kinds of Small Business Need Liability Insurance ?

Every business – be it a shop, a public stall, or a home-based business may require some kind of liability insurance. It provides protection against any third-party claims of property damage, bodily injuries caused by products, operational damages, advertising errors, etc. For example, in the event of an alleged claim of injuries in your business premises, or damage caused by products or services; the policy would provide for both legal defence and damages.

What Should You Look for in Liability Insurance?

There are a few things that should be considered before opting for a particular liability insurance policy.

• Level of Cover: The level of cover offered to cover any claims against your business is one of the key elements of an insurance. It can have a maximum limit for the entire policy period with different limits for each particular claim. Costs are generally directly correlated with the premiums paid, so it’s important to shop around to find the best policy.
• Business Activities: Depending on your business activities, you may need to pay a different rate of premiums and deductibles for your liability insurance. For example, if you have a shop or other commercial property, you will probably need commercial property insurance, whereas if your business activities require you to travel to work sites by car or van, you may need commercial auto insurance.
• Employee Liability Insurance: If you have employees in your small business, employee liability insurance can help to protect you legally if one of your employees is injured on the job, or files a claim of wrongful termination.