No matter the size of your business or the services you offer, you are at risk of being held legally and financially liable. Having a liability suit brought against your business can be both financially devastating and take a toll on your reputation. Commercial liability insurance is an insurance that is specifically designed to help your business if you are ever found to be legally liable for a variety of potential claims against your business.
Commercial Liability insurance can protect you against any number of claims. Some of the most common are:
1. Third Party Bodily Harm
In the event a client is injured in your workplace or injured as a result of a product or service you provide, commercial liability insurance would help cover legal fees in a case brought against you and pay for any medical bills.
2. Third Party Property Damage
If your business ever makes house calls, you could be responsible if something is damaged as a result of the work that you are doing for your clients. Insurance could help pay for repairs or replacement of damaged property if your business is found to be liable. For example; if you are moving equipment into a house to do a repair and damage a wall.
3. Reputation
Businesses can be sued for libel or slander because of something either you or someone who represents your business says. This can do great harm to your business’s reputation. Having liability insurance can allow you to fight the suit in court and clear your name. For example; if an employee were to degrade a competing business publicly, your business could be held responsible.
4. Advertising Injury
Copyright infringement is a real risk to businesses. Adverts, branded material, or other distributions can be violating copyright laws without the business realizing they are doing it. For example; if you use a photo in your advertisement that you didn’t take or have permission to use, the photographer could sue for copyright infringement. Insurance would help with legal fees or settlements.
Every business needs to have Commercial Liability insurance. No matter how big or small, every business is exposed to liability risk and should take the actions necessary to protect themselves in case they ever find themselves tied up in a legal dispute.
