What does Liability Insurance it cover?
A general liability insurance policy is something that all businesses need. General liability policies reduce the risk of exposure by protecting businesses from personal injury and from property damage. By the business’s actions either not doing or not doing properly. General liability insurance is meant to cover property damage, personal injury bodily injury, and unforeseen circumstances. These could affect the business or work product. General liability will not cover things such as failure to perform duties to your industry standard, professional negligence, or product liability.
People often say that they are excellent worker in their craft, they go above and beyond all the time, but even with all the hard work and cautiousness, accidents still do happen. Even the best workers have off days, may become distracted or clumsy, and that’s all that is needed in order to be wiped out if they don’t have coverage.
Apart from all of that, even if the worker is always perfect at their craft, it is very possible that a client or customer says that the work or product caused them pain and suffering. Even though that client or customer could be completely wrong or just filing a claim in the hopes that you’ll settle with them, that in itself is enough to cost a fair amount in lost time from work, lawyers’ fees, or court expenses. That could be enough to drive the company into debt.
A handful of the types of businesses that most likely need errors and omissions policies include realtors, doctors, accountants and computer repair people. To avoid situations such as this talk to a licensed insurance professional for help in determining what coverage or coverages are needed in order to be protected from these risks.
Learn about Employment Practices Liability (EPL) Insurance.
By: Niklas Almström, Insurance Advisors