In a perfect world, running a business would always go smoothly and there would never be any bumps in the road. Unfortunately, that is not reality, which is why businesses need to purchase insurance policies to help protect them from unexpected problems. One type of insurance that is important for businesses to carry is liability insurance. There are several types of liability insurance policies available, and each one of them provides protection against specific situations. Having comprehensive business liability insurance coverage can make a huge difference in whether a company thrives or fails. If you own a business, you need to have the following liability insurance policies:
Professional Liability Insurance
If your business relies on providing professional services, professional liability insurance is a must. Even highly experienced professionals can make mistakes when providing a service, and professional liability insurance coverage will help if a mistake is made. For example, if you own an engineering firm and you or one of your employees make a mistake when working on a project, there can be serious consequences, such as unexpected costs or delays. When you carry professional liability insurance, you can file a claim to cover the extra costs that may need to be covered because an employee made an honest mistake while providing a service.
General Business Liability
Whether you have an office, retail location, or provide services in customers' homes, your business needs a general business liability insurance policy with adequate coverage. As a business owner, you need to be prepared for claims from third parties. If someone is hurt in your office or store, you may be sued to cover the cost of medical bills. Likewise, if you are performing a service at a customer's home, you may be held liable if anything is damaged. General business liability insurance will cover the costs of any claims brought against your business.
Product Liability Insurance
Many businesses sell products to their customers instead of providing services. If you operate a company that sells any type of product direct to consumers, it is in your best interest to purchase a product liability insurance policy. The reason that you need to carry product liability insurance is to protect your business in the event that any of the products that you sell end up being defective and causes injuries to a person that bought the product. While injuries from defective products are not super common, they can be quite expensive to deal with, which is why product liability insurance is essential.
Reach out to a provider who offers liability insurance to discuss your business's needs.