Liability Insurance Overview

Liability insurance is a general insurance product designed to help protect purchasers (policyholders) from the third-party risks associated with lawsuits and other claims. A liability insurance policy provides specific types of coverage named within the policy. Liability coverage is almost always related to third-parties who suffer a loss caused by the insured as opposed to employees and insureds themselves. Generally speaking, covered losses must be unintentional as damage caused intentionally is not covered by most liability insurance policies.

Commercial General Liability Insurance

Commercial general liability insurance, also known commonly as business insurance, is a liability policy specifically designed for business owners. GL coverage will always include both bodily injury and property damage caused by the direct or indirect actions of the insured.

Although commercial general liability is similar to personal liability insurance, or homeowners insurance, the policy language, liability limits, and coverage options are specifically designed for business owners. General liability insurance is the most common type of insurance required and purchased by business owners. It is required by law and other contractual agreements such as lease agreements, bank contracts/agreements, purchase agreements, and B2B agreements in every state throughout the U.S.

Other Types of Business Liability Insurance

There are several different types of commercial liability insurance products related to both small business and large corporations. Depending on your industry, associated risks and assets, some of these products may or may not be applicable to your business:

Professional liability insurance, also known as errors and omissions, is typically purchased by businesses that provide professional services such as lawyers, doctors and accounting firms. This type of insurance provides coverage for malpractice, bad advice and negligence on the part of the insured.

Businesses that manufacture or distribute a physical product may be held liable for the safety of their product. Product liability insurance covers claims stemming from the product in the event the product causes injury or harm to the consumer. Medical device manufacturers are an example of companies who need this coverage.

Property insurance can include coverage for a building you own, the equipment inside the building, inventory and even personal property of others. Policies generally cover loss or damage due to theft, vandalism, fire, smoke and wind or hail damage. Other events may also be included in property coverage.

Commercial auto insurance is almost the same as personal auto. However, the limits of coverage are typically higher for commercial coverage in order to better protect the business. If the business owns the vehicle, this coverage is extremely important. Companies that don’t own a vehicle should still consider adding an alternative coverage to their policy called Hired and Non-Owned Auto. These policies protect the business in the event an employee has an accident while working for the business.

An Umbrella policy is a relatively inexpensive coverage that extends over the top of all other active insurance policies for the business. The purpose of this coverage is to expand the coverage and limits of insurance coverage in case a claim(s) become greater than the limits of coverage on the primary policy.

Employers liability insurance is more commonly known as workers compensation insurance. This type of coverage is strictly designed to provide coverage to injured employees of the company and is not a third-party coverage like most liability policies. Most states require workers comp insurance for businesses with one or more employees.

Getting a Business Liability Insurance Quote

Getting business liability insurance quotes can be a difficult task for many business owners. Every industry and every business is unique, which requires an agent to fully understand the risks and needs of the business in order to offer the right coverage at the lowest rates possible.

At General Liability Shop.com, we’re national business insurance Specialists. We’re licensed in every state throughout the country and all we do is business insurance. Give one of our Specialists a call today for a free no-obligation quote. Or get started now online.

Liability Insurance Costs

Business liability rates and premiums vary significantly between industries, states and insurance companies. Much of this variance is based on actual claims data, state laws and carrier experience. The only way to ensure you’re getting the very best deal is to shop your commercial insurance with more insurance companies to ensure you find one with an appetite for your business insurance.

We shop general liability insurance so you don’t have to.

Liability Insurance Overview