What does a business liability insurance cover?

Business liability insurance helps cover the cost of injury and property damage claims against a company. It can help pay for medical care, repair or replacement of damaged property, and legal fees for covered claims. A liability policy can also cover costs related to errors or inaccuracies in advertising. General liability insurance covers common business risks, such as customer injuries, damage to customer property, and protects your small business from the high costs of lawsuits and helps you qualify for leases and contracts.

Small business owners can fill this gap with bond coverage, which is a type of inland marine insurance that can supplement both general liability and commercial property coverage. Even if that doesn't apply to you, small businesses that work directly with customers and customers benefit from general liability insurance. For companies that rent the commercial real estate in which they operate, general liability insurance protects against liability for damage they may suffer due to fire, mold, floods or other physical disasters. This commercial liability insurance coverage covers legal costs if a customer trips and suffers an injury to your business, or if you accidentally damage someone's property.

Almost every company needs general liability insurance, but companies that provide professional services need additional protection against errors and dissatisfied customers. This commercial insurance policy covers legal defense costs if someone files a lawsuit for a bodily injury, property damage, or advertising injury. A general liability insurance policy can cover expenses when your business accidentally damages or destroys someone else's property. Corporate liability insurance protects company assets and pays for legal obligations, such as medical expenses incurred by a customer who is injured on store property, as well as any work injuries sustained by employees.

Instead, these companies require liability insurance for the media, which is a form of liability insurance. While contractors who don't have a physical location or expensive equipment probably don't need a business owner's policy or commercial property insurance, they will benefit from general liability insurance. Supplemental insurance increases the maximum limit on your policy, which means your insurance company can cover more expensive demands. Small business owners often need general liability insurance to meet the requirements of a lease, loan, or contract.

While commercial general liability (CGL) insurance is generally not required by law, it is likely to be required by the landlord, mortgage company, business partners, or customers. Liability insurance for alcoholic beverages covers legal fees for incidents involving people who were intoxicated in your business.