Business Property And General Liability
When you look around your business, it’s obvious that you need to protect against damage to your buildings, equipment, and staff. Less obvious—but no less important—is the risk of damage to other people and businesses, which could leave you paying out large sums if you are held liable.
What insurance does and does not cover
This policy mainly covers bodily injury to people outside of your business and physical damage to their property. A few exceptions to this principle include data loss and reputation damage, such as one of your employees defaming a client. It’s important to note that this type of coverage doesn’t apply to cases where you are sued for giving inadequate professional advice. Errors and omissions insurance may help to protect your business from that specific type of risk.Higher liability coverage than auto insurance for individuals.
Understanding business auto insurance coverage
When obtaining business auto insurance, you may opt for higher liability coverage, as businesses typically have more assets at risk. Insurance pays for damage to your vehicles, regardless of who caused the collision—a must if you lease or finance commercial vehicles, ensuring financial protection in case of accident damages.
Do your employees need coverage on their personal vehicles?
If your employees are using their own personal vehicles for business-related reasons and they get into an accident, your business might be held liable. With non-owned auto liability coverage, your business may be protected.
Essential for employees who use their own vehicles for work
It’s also worth considering non-owned auto liability coverage, which is an add-on or a separate policy covering those instances when your employees drive their own personal cars or trucks as part of their work for your business. This type of protection may help reduce the risk of messy legal complications, medical expenses, or vehicle repair costs if they are injured or their vehicle is damaged while on the job.
Protecting your business against legal battles
Business liability insurance also provides peace of mind by offering legal defense coverage. If your business is sued for covered claims, this type of insurance can help with legal fees, court costs, and settlements or judgments up to the policy limits. This support ensures that unexpected legal battles won’t derail your business’s financial stability, allowing you to focus on operations rather than costly lawsuits.
Bodily injury, property damage, advertising injury, and medical payments are typically included, ensuring comprehensive protection against a variety of potential liabilities your business might face.
The cost of your policy may vary depending on the industry type, location, size of your business, claim history, and the level of coverage required. These factors play a crucial role in determining the risks your business faces and can directly affect your premiums.
Your business needs to have this type of policy if you ever meet clients at your business or theirs, or have any physical access to their equipment. Additionally, this coverage may be a requirement before some businesses will sign a contract with you.
