No matter what business you are in, things can go wrong. Your operations pose a risk of injury to your workers, customers, and passersby. These risks leave you liable for personal injury and property losses. To preserve your business and provide yourself with a financial safety net, you should know who needs liability insurance.
Types of Liability Insurance
Liability insurance covers a range of situations. All liability insurance deals with issues of injury and damage. The main types include automotive, homeowner, professional, business, and manufacturer liability insurance. Each of these policies will vary in their terms and agreements per agency. Most insurance companies provide these options for their clients.
What Liability Policies Cover
Liability policies cover the insured for all kinds of incidents that fall into three major categories: bodily injury, property damage, and slander. Whether or not you or your company is responsible for the defendant’s claims, your insurer will cover these issues within the terms of your policy.
Personal injury claims relate to harm caused by you or your facility. From falling debris to faulty equipment, there are many ways you can endanger people. Property damage describes any damage caused to high-value items by you or your operation. Slander and libel are more nuanced situations. Generally, this describes instances in which your use of particular verbiage impacted another individual or company’s reputation.
Who Needs Liability Insurance
Anyone who owns and operates a business should have professional liability insurance. These policies can cover grocery stores, medical facilities, religious institutions, and many other kinds of establishments. Business owners, medical professionals, and even lawyers themselves need liability insurance to safeguard their careers and resources.
Understanding who needs liability insurance equips you to make the best decisions for your personal and professional life. If you have frequent accidents or know your industry is prone to legal claims, learn more about the difference between general and professional liability insurance to protect your assets.
