Business Liability Coverage for Small Businesses

As a small business owner, it’s imperative that you have sufficient liability coverage in the event your company faces lawsuits and other claims. Liability insurance protects the financial interests of both you and your company.

What Does a Business Liability Policy Cover?

Business liability insurance coverage varies, depending on your policy. It’s important to discuss the options with your insurance agent to make sure you select the right policy for your business. Coverage can include many types of business liability, including:

  • General liability insurance – This policy covers the costs involved with bodily and personal injuries to clients, damages to others’ property and the defense costs involved in litigation.
  • Professional liability insurance – Also called errors and omissions insurance, this coverage protects your company when you or someone in your company is sued for errors or negligence while performing services.
  • Directors and officers insurance – If a director or officer in your business is sued by clients for decisions made, D&O insurance will help cover the legal fees and other costs incurred.

A small business is especially prone to lawsuits because it doesn’t have the vast resources that are available to large corporations. That makes it even more critical for a small business owner to invest in a comprehensive liability package to protect their investment.