Liability insurance – What kind does a business need?

About business liability insurance

There are two kinds of business liability insurance, which is insurance designed to protect companies against any harm caused to others. Standard liability insurance provides coverage for harm caused by something that a business does, or doesn’t do, in the operations of the businesses. This can include things like injury to others, property damage caused by a company or its employees’ action, or errors in the service provided.

Professional liability insurance, also called errors and omissions insurance, is a special type of business liability insurance, and is not typically included in a business insurance quote from an agent or broker. However, it’s an important coverage for many professional who operate a business.

Professionals such as architects or consultants are expected to be experts and to perform up the standard of their profession. These professionals can be held liable if their actions or inactions cause harm to a person or business. Professional liability insurance pays for any financial losses if a client sues the professional.

For most small- to mid-sized businesses, a Businessowners Policy tailored to the proper industry is the most cost effective way to purchase business liability insurance, in a bundle with property insurance. Getting a business insurance quote on a package insurance policy like this allows businesses to compare the offerings of insurance companies.