Running a business always comes with risk, whether investments or unforeseen accidents cost you tens of thousands of dollars in medical expenses and legal fees. Therefore, it’s critical to have a plan to manage these risks, including getting business liability insurance.
Liability insurance helps you protect your bottom line by preparing for worst-case scenarios before they happen. Disaster doesn’t just come in the form of hurricanes—a lawsuit, for example, could significantly hurt your business. At The Gordon Agency, our independent insurance agents can help you find the right coverage for you while keeping your budget in mind.
Why Do You Need Business Liability Insurance?
It’s not uncommon for businesses to face lawsuits for personal injuries and property liability damage, product liability, advertising damages, and more—from clients, competitors, or customers.
The level of risk varies depending on the business, but no one is exempt from accidents. If someone slips and falls and then decides to file a claim against your restaurant for damages, you could end up paying for medical bills, loss of wages, and pain and suffering.
Business liability insurance helps you cover the cost of legal fees and the settlement or verdict. The law requires businesses to have insurance such as workers’ compensation, but it doesn’t require liability insurance. However, deciding against it can leave your business vulnerable to potential bankruptcy-inducing legal costs.
What Does Liability Insurance for Businesses or Corporations Cover?
Business liability insurance provides coverage for different types of claims, including:
- Bodily injury. If someone receives an injury at your business, they could file a claim for bodily injury and get compensation for medical expenses.
- Property damage. You could face legal costs if the property damage happens at your business or if you damage a client’s home while working on it.
- Product liability. If you produce a product that causes bodily harm to a consumer, your company could be liable for personal injuries.
- Copyright infringement. Someone might sue you for using their work for your business’s marketing without permission.
- Advertising injury. This claim results from your business defaming other businesses or business owners.
The amount of coverage you need depends on the size of your business and the types of risks involved in your industry. Insurance companies typically offer coverage per occurrence and a policy limit. For example, your policy might provide $1 million in coverage per occurrence, but you have a $2 million limit on total claims per term.
Things That Business Liability Insurance Doesn’t Cover
- Business liabilities insurance covers accidents involving customers, defamation cases, etc., but it doesn’t cover employee injuries. All businesses must have separate workers’ compensation insurance to pay medical bills or disability for employees who receive an injury on the job.
- It also won’t cover injuries from vehicle accidents, even if a company car hits a pedestrian. Different types of commercial auto insurance exist for protection from accident claims involving vehicles related to your business.
- Professional mistakes, which usually involve errors by doctors and lawyers, don’t fall under business liability coverage. Instead, professional liability insurance helps business owners pay the damages related to mistakes a person makes in their profession.
- You’ll need commercial property insurance in case of theft because business liability policies won’t cover your assets if a thief manages to take off with your company’s equipment.
How Much Does It Cost?
The cost of business liability insurance varies depending on factors including:
- The size and location of your business
- The type of business and its risk level
- The age (experience) of your business
- Your business’s claim history
- The coverage and deductible you choose
You can control how much you pay for liability insurance by selecting the best coverage for your business, depending on whether you are open to the public. A shop with many customers going in and out of its building every day might see more risk than a software development company with a private office.
A high-risk business might opt for higher coverage and a low deductible to protect themselves as much as possible, while a business with less to worry about might choose less coverage and a high deductible to save money on their premiums.
Other Types of Business Insurance
Business liability insurance is essential for protecting your business against crises, but it doesn’t cover everything. Other types of business insurance include:
- Commercial property insurance covers business property such as equipment, furniture, electronics, and inventory in case of damages.
- Product liability insurance covers instances where a business’s product injures a customer.
- Business owners policy (BOP) provides general liability coverage and commercial property coverage
How to Find South Florida Business Liability Insurance Near Me
At The Gordon Agency in Boca Raton, FL, we have helped many South Florida business owners obtain comprehensive business liability insurance and other essential coverage. Our experienced agents can help you assess your business’s risks and find the right policy from a pool of excellent insurance carriers.
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