What Every Business Owner Needs To Know About Commercial Liability
One of the biggest mistakes that many business owners make is underestimating their company's insurance needs. Liability insurance is one of the most commonly overlooked and underestimated policies for business owners, so it is in your best interest to understand it. Most companies can benefit from an investment in additional liability coverage as part of their business insurance package.
Your Property Insurance May Not Have Enough Liability Coverage
One of the first things to consider when you weigh the benefits of general liability insurance is whether or not you have enough liability coverage in your commercial property policy. Most commercial property coverage is limited, with only a moderate liability limit on the policy. In addition, those policies often restrict coverage to only liability losses occurring on the company's property. That means you need additional coverage for your company's total liability exposure.
High-Risk Businesses Need High-Limit Policies
General liability umbrellas generally come in increments of million-dollar benefit levels. When you have a business with higher risk factors, including high-value companies and those companies that are in high-risk industries, you need to have enough liability coverage to address those potential exposures. Think about the maximum amount your company could potentially lose as the result of a liability claim and choose a coverage limit that covers at least that much.
General Liability Umbrellas Cover Many Risks
Liability umbrella policies offer more coverage than you might think. Not only do liability umbrella policies offer coverage for bodily injuries on your property, but they also extend coverage for any injuries that occur in the order of doing business, no matter where that is. These liability policies also extend to the damage done to other people's property, libel and slander claims, copyright violation issues, and more. You can also add coverage lines to a liability umbrella for things like cyber liability and advertising injuries.
General Liability Umbrellas Do Not Cover Certain Losses
Injuries to your employees and liability claims resulting from car accidents are excluded from most general liability policies because there are other coverage lines that apply to those losses. Not only that, but you may also find that product liability claims and intentional acts are excluded under these policies as well.
Talk with your commercial insurance agent today for more information about the coverage solutions for your business. The right liability umbrella and business insurance package can make a difference in your company's financial security and long-term risk management.
For more info about business insurance services, contact a local company.
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