Protect Yourself Against Negligence With Business Liability Insurance
Liability insurance insures against negligence of your business or employees. In other words, it protects your business when it is sued for neglect. There are two types of liability policies:
- Claims made policy
- Occurrence policy
A claims made policy means that the company that currently insures your business will pay the claim of something that happened long ago, even if they were not the insurer at that time.
For instance, if you are a builder and a defect is determined 10 years after the fact, your current insurance company will be your insurer.
The occurrence policy means that the insurance company that insured you at the time the problem occurred will handle the claim.
In the same example, the builder would be covered instead by the insurance company that insured him 10 years ago.
What is covered and not covered often depends upon the laws of your state. However, all of the following are not covered:
- Injury to a worker
- Damage or loss caused by a company vehicle
- Damage to business property
- Pollution
Having both casualty and liability insurance in conjunction with property insurance will keep your business rolling despite disasters.
Hopefully, you will never need to use your coverage. However, business liability insurance when you need it can be the difference between business success and business failure.
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Commercial Auto Insurance And Your Business
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