Business liability protects a business against the cost of injury, property damage claims or any other type of issue resulting from normal business operations. It is intended to safeguard a company’s finances if they encounter a lawsuit or claim from a third party. If you are a business owner in San Diego, California, and have questions about your insurance coverage, Windfall Insurance Services Inc. can help. Read on to learn more about the importance of business liability insurance.
How Does Business Liability Insurance Work?
Business liability insurance, also sometimes referred to as commercial general liability insurance, protects a business’s assets and helps to pay for any legal obligations such as medical expenses for an employee or customer that becomes injured on a company’s property. It also covers any legal defenses needed in the event of a lawsuit, including compensatory damages, punitive damages, and non-monetary losses caused by an injured person. If a business rents commercial real estate in order to operate their company, business liability insurance can also provide protection against any damages caused by natural disasters such as fire, flooding, mold, etc. It can also help cover any claims caused by misleading advertising, such as copyright infringement, slander, and libel. Small businesses may particularly be vulnerable to personal financial risk during a business related lawsuit, so they will want to ensure that they have appropriate coverage. Generally, if a business has direct interaction with customers, has employees, is involved in a high risk industry, or has employees that drive or work off site, it is important for that company to have business liability insurance.
What Types of Business Liability Are Available?
Having the right type of business insurance is crucial to protecting your business, and sometimes, it may make sense for your company to purchase more than one type of policy or bundle different policies together. Without appropriate coverage, a business may end up paying for certain expenses out of pocket. Some common types of business insurance include:
- Commercial property insurance – protects against damage to property that has been rented or purchased by a business
- General liability insurance – protects against any injury to others, personal injury, or damage to property that occurs at a business site
- Professional liability insurance – covers any issues that are found in the products or services a company sells
- Business income insurance – helps protect against the loss of income to a business
- Data breach insurance – covers any damages that are caused by cyber attacks or breaches of data
Business Liability Insurance Assistance
Your business is one of your most valuable assets, and business liability insurance can help give you the peace of mind that your company is fully protected. If you have business insurance questions in San Diego, California, contact Windfall Insurance Services Inc. today for a consultation.