What Does Business Liability Insurance Cover?
An important aspect of running a successful business is having the right commercial insurance coverage. After all, without a suitable policy, your business could be at risk of financial losses from any claims involving injury or damage. Fortunately, business liability insurance is a broad coverage that exists for just that reason. But what specific aspects of coverage should you consider for your own business? We’re discussing the different types of insurance included within a business liability insurance policy and sharing our advice to help your business find the best financial cover.
What Is Business Liability Insurance?
Before diving into specifics, it’s important to understand what business liability insurance is and how it protects businesses. Sometimes known as commercial liability insurance, this is a type of coverage that safeguards against potential losses occurring due to lawsuits or any claims made against a business. These claims could arise from a whole range of issues including personal injuries or property damages.
The unique risks that each business faces are likely to vary based on their respective industry and the way in which the business operates. With that in mind, there’s no one-size-fits-all approach to business liability insurance policies. Instead, each policy should be tailored to the individual business, factoring in the unique risks and hazards they may face.
When considering a commercial insurance policy for your own business, these are the main types of coverage you should consider including:
Employer’s Liability Insurance
Employer’s liability insurance protects a business owner from legal claims made by employees who have been injured, become ill, or face disabilities as a result of their job activities. Having this type of coverage is a legal requirement for all businesses in the UK, providing cover for legal fees, compensation payments, and any other expenses incurred due to an employee’s claim.
Public Liability Insurance
Public liability insurance protects businesses against claims made by anyone, other than an employee, in the event of injury or property damage that has resulted from the business’s activities. Public liability coverage can sometimes extend to cover activities outside of normal operations, such as business-related incidents that occur while a business owner or employee is off-site or travelling for work.
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, protects businesses that provide professional services from claims of negligence. This type of policy is commonly held by architects, surveyors, and accountants, but is also important for any business that provides advice or services to clients. Professional liability coverage may cover legal fees and any damages awarded to the plaintiff as a result of the negligence.
Product Liability Insurance
Product liability insurance is designed for businesses that manufacture, distribute, or sell products to the public. It protects against lawsuits arising from injuries caused by defects or malfunction of those products.
Cyber Liability Insurance
Cyber liability is a type of business liability insurance that protects businesses from risks related to data breaches or cyber-attacks. This can cover expenses associated with data breaches, data loss, and other cyber security-related incidents.
What Business Liability Insurance Doesn’t Cover
While commercial liability insurance is comprehensive, it’s important to note that there are some aspects a policy won’t be able to cover. For instance, this can include any intentional acts. If you or your business intentionally harm someone or their property, liability insurance will not cover the associated fees. Likewise, for damage to your own property, you’d require commercial business insurance to include property such as stock and contents cover.
Business Liability Insurance From Higos
At Higos, we’re a chartered insurance broker specialising in commercial insurance across a vast range of industries. No matter the size of your company, our experts will get to know the details of your business and tailor a bespoke insurance package to meet your needs. If you have any questions about our commercial insurance services, please get in touch and we’ll help in any way can.
Contact us today and speak with our team. For business liability insurance, it has to be Higos!