Liability Insurance for Business Owners: An Overview

Every business with employees that’s open to the public should carry commercial liability insurance. This type of insurance exists to financially protect businesses and their patrons from the high costs of misfortunate events such as accidental injuries. Here are essential points to know about insuring your business against potential liability.

What’s Covered under Commercial Liability Insurance?

You have various options for commercial liability insurance. The most common is General Liability Insurance (GLI), which pays for bodily injury and property damage caused by your enterprise. A popular synonym for this coverage is Commercial General Liability (CGL) insurance. Whatever you wish to call this basic policy, it can be bundled with other forms of coverage under a Business Owner’s Policy (BOP). Some businesses use GLI as a standalone policy, while many firms choose to customize their policies.

What GLI Covers

Your basic liability insurance plan covers what average business might consider to be sufficient for their needs in terms of benefits for legal costs. If your company is sued by a customer, you won’t have to pay attorney fees out of your own pocket.

GLI covers bodily injuries that your business causes to third parties who suffer, leading to hospitalization. It also covers claims involving third-party property damage and reputational harm. Slander, libel, and infringement are all usually covered under basic plans. A business that uses photography without permission from the copyright owner, for example, can face an expensive court battle.

As a policyholder, you can set your own coverage limits, depending on the policy. Whatever your general plan does not cover, you can supplement with add-on coverage.


Different Types of Commercial Liability Insurance

  • Commercial Umbrella Insurance:

    This type of insurance provides more extensive coverage options. It allows for a diverse variety of specialty coverage, which is helpful to unique operations.

  • Employment Practices Liability Insurance:

    If an employee sues your company, the coverage pays for legal costs, including settlements relating to issues such as discrimination and sexual harassment.

  • Management Liability Insurance:

    Sometimes business leaders make mistakes that can result in misfortunes for others. This coverage pays for legal claims against management officials.

  • Commercial Auto Insurance:

    All vehicles used for business must be licensed with the state in which they are used. It provides similar coverage to a personal auto insurance plan.

Benefits of Commercial Liability Insurance

Carrying the right commercial liability insurance will save your business from owing thousands of dollars to third parties who were either physically hurt or offended by your company. You will preserve the company budget devoted to business goals instead of paying off expenses incurred in major setbacks.

Another benefit is that affordable liability insurance is available when you work with an insurer that allows for customized plans. Contact our experts at J. Archer Insurance Group for more information on finding the right commercial liability insurance for your needs.

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