Best Liability Insurance - Small Business Insurance

Liability insurance is just one type of insurance that is available to protect your financial resources.  It is also the most popular insurance coverage because it costs far less than a full coverage policy.  The reason liability insurance is less expensive is because it does not cover your losses.  Liability insurance only covers the losses of second or third parties.  It protects you from being held responsible for the other party’s damages.

The most common form of liability insurance is automobile liability. This coverage protects you from financial responsibility to bodily injury and property damages caused by accidents involving vehicles owned or leased by you. Nonowned automobile liability protects you from the same responsibilities but from accidents involving vehicles owned by others while driving on your behalf. Then there is hired automobile liability which covers rented vehicles.

The most common reason for purchasing auto liability insurance rather than a full coverage policy is obviously the costs related to the coverage.  Liability insurance is mandatory In all 50 states and the District of Columbia. The minimum amounts differ by each state so you’ll want to get a quote based on your location. 

When getting a quote you’ll receive a number that looks something like this: 20/40/15.  The first two numbers represent the bodily injury coverage.  In the above example there is $20,000 coverage per person and $40,000 coverage per accident.  In the event that there are more than 2 people involved in the accident then the first to put in a claim will get access to the maximum coverage and you may be sued for the remainder if the accident was your fault.  The last number represents the total coverage per accident for property damage. 

Let your insurance provider help you determine the minimum liability coverage that is right for you based on your driving record and other actuary statistics at their disposal.

The next most common forms of liability insurance provide coverage for businesses and professionals doing business. These policies are either General Liability, which covers bodily injury and property damage caused by an accident, or Directors & Officers Liability, which covers financial loss and personal injuries caused by wrongful acts.

Not all business insurance can be lumped into the same category.  Many insurance providers have what is called “niche insurance packages” which are common liability coverage for a particular industry.  Some niche packages would include liability insurance for a church or non-profit, a retail store, residential and commercial contractors, as well as home businesses.

Below you will find some common, but not exclusive, forms of business liability insurance.  You will also find some links to get online quotes for your business insurance needs.  These insurance brokers can help you determine the types and amounts of liability that your business needs.

Examples of these types of liability insurance coverage’s include:

• · Professional Liability which covers injury caused by negligence while delivering professional services.
• · Sexual Abuse Liability which covers claims arising from sexual misconduct while hiring, screening or supervising employees, potential employees, or volunteers.
• · Employment Practices Liability which covers claims of economic injury to employees rising from wrongful termination, sexual harassment, and illegal discrimination among other issues.
• · Workers Compensation which covers bodily injuries to employees.
• · Employee Benefits Liability which covers claims of financial injury to employees rising from negligent administration of employee benefit plans.
• · Errors and Omissions Liability which provides protection to professionals for claims of negligent acts that result in bodily injury, personal injury, or property damage to a client.