Commercial Liability Insurance
New Businesses Need Commercial Liability Insurance
If you are considering opening an new business, commercial liability insurance will be among the first coverages that will come up for discussion.
As boring as it sometimes is, every person that is thinking of going into business, or, for that matter, everyone that already is in business should make it his or her business to be thoroughly informed and educated about the various insurance coverages that may be required for business purposes.
Bodily Injury And Commercial Liability Insurance
There are various coverages that protect you under most general commercial liability insurance policies. The most widely recognized form is called bodily injury coverage. This type of commercial liability insurance protects you and your business from claims made if customers injure themselves while in or on your business property.
In this event, your commercial insurance would compensate the injured for injury to their body. While, you the business owner are legally liable, your commercial liability insurance would pay the claim.
Another type of coverage that is packaged with standard commercial liability insurance policies is called personal injury coverage. While it sounds like “bodily injury”, it is entirely different in that it protects your business from less tangible claims, those of a psychological nature rather than those of a purely physical nature. A good example of this type of claim would be when you or one of your employees slanders a customer.
Yet another type of general commercial liability insurance coverage is called advertising liability. A typical example of this type of claim would be if your business inadvertently used copyrighted material in your advertising campaigns. In this case, you and your business could be sued for copyright infringement.
Something to be aware of is that general commercial liability insurance policies typically have lower dollar limits on claims. It is up to the business owner to buy enough coverage to protect all his assets should claims be made over the dollar amount of the general liability package.
For example, if someone who makes liability claims against your business is awarded two million dollars and your liability coverage only goes to one million, unless you have additional coverage, you would be held responsible for the remaining million that your general policy didn’t cover. In many cases, such a claim could wipe out you and your business.
It is common to purchase an umbrella policy when a business requires higher insurance limits than a general liability policy can give. It is important for the business owner to carry higher limits when you have more to lose, therefore, an umbrella policy is often the way to afford yourself full protection.
Commercial Liability Insurance Can Be Confusing
The entire field of commercial liability insurance can be tricky to steer through, and that is especially true for the new business owner. It is always best to take the time to find and use the services of licensed professional commercial insurance brokers who are trained to help you navigate the sometimes intricate language of commercial liability insurance coverage.