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Introduction
If you’re running a small business, you know how important it is to have the right liability insurance. Whether you’re a freelance writer or an online retailer, your customers can sue you if they get hurt while using your products or services—and what’s worse is that they can keep your profits in the process! To avoid this nightmare scenario, read on for some practical information about liability insurance and how it works.
General Liability Insurance
General Liability Insurance is designed to protect your business from lawsuits. It covers claims for bodily injury or property damage that you cause to other people, as well as claims for bodily injury or property damage that you cause to the general public. General Liability Insurance also includes protection against legal fees associated with defending against these types of claims.
Business Owners Policy (BOP)
Business owners policies (BOPs) are a combination of property, liability and business interruption insurance. A BOP covers you for losses to your property, such as fire or theft; it also protects against lawsuits brought by customers or vendors who were injured because of something related to your business.
If there’s an accident at work that causes someone physical injury, the BOP will pay for medical expenses up to $1 million per person per incident–and this includes hospital bills and surgery costs as well as lost wages while they recover from their injuries. If someone dies in an accident on your premises due to negligence on your part, then their family may file a wrongful death lawsuit against you seeking compensation for funeral expenses along with other financial losses associated with losing their loved one so suddenly and unexpectedly. With proper coverage through an appropriate policy such as this one offered through Allianz Global Corporate & Specialty Insurance Group (AGCSIG), AGCSIG will cover defense costs associated with any civil litigation brought against them by third parties claiming damages stemming from incidents involving company vehicles (including automobiles driven by employees).
Product Liability Insurance
Product liability insurance covers you if your customers are injured by a defective product. The policy can also cover the cost of defending yourself against lawsuits.
Product Liability Insurance is a type of commercial general liability insurance that protects businesses from claims made by customers or other parties who have been injured or suffered damage due to products sold by the insured business. Product Liability Insurance covers bodily injury, property damage, personal injury and advertising injury claims made against you by these individuals as well as any costs associated with defending yourself in court against those claims (including legal fees).
The amount that an individual pays for this coverage will vary depending on several factors including: their industry type; size of operation; whether they sell online only or through brick-and-mortar stores as well; number/type/location/value of assets owned by company etc… But generally speaking expect premiums ranging between $1-$5 per $100 worth sold annually depending on how much risk management needs exist within your industry sector (i.e., higher risks = higher premiums).
Umbrella Coverage
Umbrella coverage is a form of liability insurance that protects you from claims that exceed the amount of your other insurance policies. For example, if someone sues you for $100,000 in damages and wins their case, but your car insurance only covers up to $50,000 in damages (and nothing else), umbrella coverage can help make up the difference.
In most cases, umbrella policies will also cover legal fees associated with defending yourself against lawsuits. This allows businesses who have limited funds available for litigation costs to avoid being bankrupted by one big lawsuit–and allows them to keep operating without having to stop paying employees or suppliers while they wait for their case to go through court process
Professional Liability Insurance (E&O)
Professional liability insurance (E&O) is a form of insurance that protects your business from claims made by clients and customers, such as those related to:
- Fraud
- Negligence
- Breach of contract
It also provides coverage for claims arising out of employment practices, including discrimination and sexual harassment.
E&O policies can come in two forms: “claims-made” or “occurrence.” Claims-made policies cover all incidents reported during the policy period regardless when they occurred; occurrence policies only cover incidents that occur while the policy is active.
Errors & Omissions Insurance (E&O) – What Is It?
Errors and omissions insurance (E&O) is a type of liability insurance that protects you from claims made by your clients, customers, or other parties. E&O covers situations where you’re liable for errors or omissions in your work. It can also cover unintentional acts like failing to provide a service that was promised.
E&O policies typically include:
- Professional Liability Coverage – This coverage protects against claims made by third parties who have been injured as a result of negligence on behalf of the insured party’s employees or agents while acting within the scope of employment for which they were hired by the insured party. For example: A graphic designer working for an advertising agency creates an ad campaign but accidentally misspells one word in one sentence on all printed materials; this mistake results in legal action against both parties involved (the designer/agency). Professional Liability would apply here because it was an act performed during normal business hours at no charge–and therefore qualifies under this policy!
You can’t run a business without any liability insurance.
It’s that simple. Liability insurance protects you from lawsuits, which are often brought against businesses when they make mistakes or fail to meet customer expectations.
In addition to protecting your company, liability insurance also protects employees who may cause harm while working for you–whether it’s an accident at work or something else like medical malpractice. And if someone sues after getting sick from eating one of your products? Liability insurance will cover that too!
Conclusion
Liability insurance is an essential part of running a business. It protects you from lawsuits and helps cover any losses that may occur as a result of accidents or mistakes that happen on your watch. The good news is there are many different types of insurance available to help cover these risks, including general liability, professional liability (errors & omissions), product liability and more!
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