As a business owner, you need to make sure you protect your business and your assets. No matter how well you run your business, things can come up that can put you at risk of being sued. This is where liability insurance can help, and in order to have a better grasp on what liability insurance is and how it can protect you, you want to read this article that covers some of the most commonly asked questions and answers on the topic.
Are you required by law to carry liability insurance?
While it may not be the law that you need to carry liability insurance, you may need to have a policy in order to tend to some important things, such as applying for certain licenses or entering into contracts with other businesses if they have it written in the contracts.
What are some of the most common liability insurances for small businesses?
There are quite a few different types of liability insurance which allow businesses to get coverage in the areas that are the most concerning for them. A few of the most common types of liability insurance for small businesses include:
General liability — General liability is a basic coverage that protects a business from lawsuits and helps to pay for damages and injuries.
Professional liability — Professional liability is a type of insurance that is available for those in certain types of professions. Just a couple of examples of professions where this type of insurance would be relevant includes those working in the medical field and lawyers.
Commercial crime liability — Commercial crime liability is a type of insurance that offers protection from losses that may stem from employee thefts or third-party fraud.
Product liability — Product liability is a type of insurance that is available for those who manufacture products. It would be there to protect them from things like lawsuits regarding injuries sustained by products they have manufactured or lawsuits due to something like the losses someone may have sustained due to the malfunctioning of a product.
Cyber risk liability — Cyber risk liability is a type of insurance that protects a business should something happen via the Internet, such as their system being hacked and information accessed by entities that should not have had access to it.
Would an independent contractor need liability insurance?
Independent contractors will be working as self-employed individuals, and this means they should also take steps to protect themselves and their assets in case of a lawsuit. Therefore, it is a good idea for them to consider carrying liability insurance as well.