Learn About The Different Types Of Business Liability Insurance
Liability is a term, which encompasses all such negligent actions of a person, which can result in serious physical injury, financial losses or stress to another person.
Every business owner, irrespective of the scale of his business, need to secure his business against unexpected liabilities by taking business liability insurance. Business liability insurance covers all the expenses that may be incurred due to your negligence or due to any discrepancies in the products or services offered by your business.
Taking up business liability insurance can be very advantageous for you as it can save you from paying a lot of money from your pocket towards compensation to a third party claiming damage. In case of physical injury to a person caused due to the products and services offered through your business, the business liability insurance looks after all the medical expenses as well ass reimburses the wages that were cut during the recuperation phase. Moreover, in case somebody files a lawsuit against your business, then the business liability insurance also pays for the legal cost.
There are 3 types of business liability insurance, that are means for different kind of business risks and these 3 types of business liability insurance are explained below ?
General liability insurance, which is also termed as commercial general liability, is considered to be a broad type of coverage for all types of business set-ups. It protects you against third party claims and liability including claims made for property damage, advertising claims, or the most common form of claim ? that is the claim of physical injury caused on your company?s premises due to your negligence or due to the poor quality of products or services offered by your business. General liability insurance covers the claims made by not only your customers, but also your own employees.
The second type of business liability insurance is called as professional liability insurance, which is also, knows by the name of ?errors and omissions? coverage. It is compulsory for professionals (such as surgeons, doctors, dentists, plastic surgeons, or bankers and financial advisors) to obtain professional liability insurance to protect their business and themselves from third party liability claims, such as mental stress, physical injury or financial loss incurred due to the oversight, negligence, technical mistakes, or malpractice by these professionals.
In case your business manufactures and sells products or provides repair and servicing for products, then it is advisable that you obtain product liability insurance for yourself and your business. This kind of business liability insurance protects you from damage claims or injury claims made by people who have used your products or your services. The risk potential of your product determines the coverage costs involved to obtain the product liability insurance. The more serious is the degree of injury caused, the greater will be the coverage costs involved.
Susan Reynolds is the webmaster for a leading South African Insurance Provider who specialises in Commercial Insurance Options.
