Business Liability Insurance

The most common type of coverage protects against allegations of employee negligence, damage to property, and personal injury. General liability insurance also supplies coverage for claims of slander or libel. Libel is a verbal or written statement that can be damaging to a company or individual's reputation. Product liability protects a company if lawsuits develop due to unexpected consequences from the use of their product, or if the product malfunctions. Also included in this category would be defective or insufficient warnings on products. Examples of lawsuits in this category would be if hot foods were not labeled properly or if hazardous chemicals were found in a product after manufacturing and sale.
Professional liability provides protection in the event of lawsuits based on negligent acts or errors made during business activities. An error, mistake or omission can easily take place during any transaction for any type of company. Error omission insurance responds to any lawsuit where someone has suffered or alleges to have suffered a financial loss during performance of services. These policies cover the expenses of settlements that need to be made in the event a mistake was made during business. For example, an architect could accidentally create a design with a structural flaw, which in turn will cost money to repair after construction. Another example would be a financial advisor who inadvertently created a bookkeeping error, resulting in late fees or the loss of money for a customer. Error omission insurance can be fairly costly and some feel it should be avoided unless deemed absolutely necessary by the professional or business.
Corporations, businesses, and professionals often need some form of liability insurance to ensure their assets are protected from lawsuits. Some states even legally require businesses to carry this type of insurance. However, this is not one specific type of policy; it is broken up into three categories. General liability insurance is the most common. Product liability covers the use and operation of actual products, and professional liability includes error omission insurance.
Business, corporations, and professional individuals often need policies in each category of liability insurance to meet their specific needs. Consulting an agent who is familiar and experienced in these types of policies is the best way to make sure adequate protection is achieved. Whether its general liability protection, product liability coverage, or error omission insurance, an agent will work to find the right policy for the best protection.