Every business is different, as are their liability needs. Liability refers to accidents and damages that may turn into legal disputes aimed against your business for various reasons. It is important for business owners to understand the liability issues their business faces in order to remain safe in the face of a claim.
Industry 
The type of industry you work in heavily affects how much and what type of liability insurance you need. Industries that include a lot of direct customer contact, such as medicine and physical therapy, may need higher limits of general and professional liability insurance. Other businesses such as contractors may need higher property damage liability in case they cause damage to a client’s or third party’s property.
- General Liability covers bodily injury, liability and personal and advertising injury claims filed against the business. This includes coverage for medical bills, property repairs and claims regarding libel, slander, copyright infringement, etc.
- Professional Liability covers claims regarding professional negligence. In different industries, this is known by different names, such as Errors & Omissions Insurance or medical malpractice.
Important Assets
What are the most important assets of your business? For most businesses, it is the workforce. Employees are the key to running a successful business, so it is important to have the right liability insurance to cover them. This includes workers compensation, which offers compensation for medical bills if an employee is injured on the job. Part of its liability coverage also protects the business in case of a lawsuit regarding a workplace injury.
Other important liability coverages may include:
- Directors and Officers Insurance covers the key directors and officers of your business from claims concerning their actions under your employment such as misrepresentation, fraud, embezzlement and more. Most of these policies also include Employment Practices Liability (EPLI), which covers claims regarding discrimination, sexual harassment, wrongful firing or hiring, failure to promote and more.
- Commercial Auto Liability covers vehicles owned and used by the business. Commercial auto insurance can cover the vehicle itself, the driver and passengers, as well as anyone else on the road. This insurance is extremely useful for businesses that use vehicles to transport equipment, goods or people.
- Product Liability covers bodily injury and property damage that may occur as a result of the business’ sold or manufactured products. If your business makes or sells products, this insurance is crucial.
Speak to an insurance agent about your liability insurance needs so that you can fully protect your business.