Business Liability Insurance

What types of Business Liability insurance coverage do you need?

What types of Business Liability insurance coverage do you need?

You might need liability insurance to fulfill the terms of a lease or contract, or protect against lawsuits brought by employees or people outside your business. Here are some of the most common types of liability insurance:

General Liability insurance is often the first policy that a small or medium-sized business buys. A General Liability policy covers the cost of common third-party lawsuits, such as a customer who sues your business over a bodily injury or property damage. It also covers lawsuits related to advertising injuries, such as copyright infringement and defamation lawsuits.

Professional Liability insurance, also called errors and omissions insurance (E&O), is crucial for consultants and others who provide advice or professional services, such as lawyers and doctors. This policy provides financial protection against clients who sue over a mistake or oversight, including missed deadlines

Cyber Liability insurance is important for businesses that handle sensitive data, such as credit card numbers. It helps pay expenses related to data breaches and cyberattacks. For example, it could cover the cost of notifying affected customers after a data breach exposes their personal information.

Employment Practices Liability insurance (EPLI) provides financial protection against lawsuits brought by employees who sue your business over wrongful termination or other violations of employees’ rights.

Commercial Auto insurance covers the cost of accidents or physical damage to your vehicles involving your business-owned vehicle. For example, it could help pay for medical expenses and legal bills if an employee driving your company car rear-ends another vehicle and someone is injured.

Employer’s Liability insurance can help pay for employee lawsuits related to work injuries. It’s typically included in Workers’ Compensation insurance and to collect a judgment an employee must sue and prove negligence (i.e, an unsafe working condition)

Commercial Umbrella insurance boosts coverage on various scheduled underlying primary policies. For example, if a claim exhausts the limits on your General Liability policy, your Umbrella policy would activate over and above exhausted primary limits.

About CMR | PolicySmart®

CMR & Associates’ risk management consultants provide independent group benefits, retirement and insurance advice by reviewing your current plans to improve coverage and reduce cost. Through CMR’s proprietary database – The CMR Database® (comprising some 13,000 brokers and specialists globally), we maximize access to the insurance and retirement industry for greater options that will translate to better coverage and lower cost.

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