What is ‘Business Liability Insurance’
Business liability insurance protects a company and/or business owner in the event of a formal lawsuit or any third-party claim. Coverage includes any financial liability incurred in addition to expenses related to the company’s legal defense. There are three main types of business liability insurance: general liability insurance, professional liability insurance and product liability insurance.
AUTOMOBILE LIABILITY INSURANCE
BREAKING DOWN ‘Business Liability Insurance’
Small business owners – especially partnerships and sole proprietorships – put their personal finances at risk in the event of a business-related lawsuit. Even under a limited liability corporation (LLC), an owner could still be exposed to personal risk. Business liability insurance provides greater financial protection than is offered by any legal structure.
Business liability insurance protects a company’s assets and pays for legal obligations, such as medical costs incurred by someone that gets hurt on company property. It also provides protection against property damage or injury caused as a result of action by the company or its employees, operating on behalf of the company. Liability insurance also covers the cost of legal defense and any settlement or award if a lawsuit is judged against the company. Such associated costs include compensatory damages, nonmonetary losses suffered by the injured party and punitive damages. General liability insurance protects against any liability a business has as a tenant for damage to rented property, such as by fire or other covered loss. Business liability insurance also covers claims of false or misleading advertising, including libel, slander, and copyright infringement.
Businesses with higher risks that exceed the coverage conventional business liability insurance may opt for excess of loss reinsurance or umbrella insurance that increases coverage limits. This will cover an organization for situations that may not be covered by conventional liability coverage. It will also ensure all costs are covered should someone file and win a claim against the business.
Determining Business Liability Insurance Costs
Coverage levels should be determined by the type of business under coverage and its perceived risks. For example, a building contractor will need more coverage than a writer. Business location also factors into the costs. For example, some states award more in damages to plaintiffs for personal injury than others.
Businesses that fall into the lower risk category may want to consider a Business Owner’s Policy (BOP) which combines general liability and property insurance at a more cost-effective rate. Any new or additional business liability insurance policies should contain an exclusions clause to minimize cost by avoiding duplications of coverage provided in other policies and/or to eliminate unneeded coverage.
Protect your business from liability claims
General liability insurance (GL), often referred to as business liability insurance, is coverage that can protect you from a variety of claims including bodily injury, property damage, personal injury and others that can arise from your business operations. General liability insurance quotes usually include:
Bodily injury and property damage liability
Personal and advertising injury
Products completed operations
Damage to premises rented to you
Learn how these coverages protect small businesses and how much you’ll want to consider for your unique risk.
Who needs general liability insurance?
General liability insurance is often combined with property insurance in a Business Owners Policy (BOP), but it’s also available to many contractors as a stand-alone coverage through the Progressive Advantage® Business Program.
As a contractor or small business owner, you need some form of business liability insurance to safeguard your livelihood.
A single accident could result in a lawsuit that you might not be able to handle. A great way to protect against this is to make sure you have liability coverage that matches your level of exposure.
Some employers or clients might also require you to carry a certain amount of general liability before you can work for them.
General liability insurance for contractors
If you’re a contractor, you might only want general liability — not a full BOP. For example, you might not own any commercial buildings that require property insurance, or need to cover payroll or other operating expenses. However, you’re still exposed to liability risks from your job.
You might be eligible to get general liability insurance, without the extra coverages in a BOP, through the Progressive Advantage Business Program. We offer general liability, as well as Blanket Additional Insured Coverage to contractors who qualify.
Blanket Additional Insured Coverage extends your existing liability insurance to other entities as required by some contracts with employers.
General liability insurance cost
Various factors influence the cost of general liability insurance. Discover how these factors relate to your unique situation, and learn several ways to find the cheapest liability insurance for your business.
Find out if your business is eligible for general liability insurance through Progressive. We can help you find the best combination between price and protection by tailoring a policy specifically for your business. Call us today or start a quote online.
Get it all in a BOP
General liability, along with other coverages, is available in BOPs written through the Progressive Advantage Business Program.
If you need to protect things like personal property used for your business, or commercial buildings such as garages or storage facilities, you might require the additional protections provided in a BOP.