Business Liability
Insurance

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What is Business
Liability Insurance?

Business Liability Insurance is a type of Business Insurance that could provide business owners financial assistance against third-party losses. Commercial Liability Insurance is intended to ensure huge and private venture proprietors against an outsider individual's obligation claims. It provides the entrepreneur against cases of substantial bodily injury and property damages that could emerge out of the business premises. Moreover, it could also cover the insured against its products, completed and ongoing operations, and injuries caused by their advertisements.

This type of insurance could help pay against two types of financial loss arising out of a lawsuit against the insured company. First, it covers damages to a third party due to injury or property damages for which the insured is legally responsible. Second, it covers the cost of legal fees and could defend the insured against the charges alleged in the suit.

Business Liability Insurance Coverage

Small business owners are always at the risk of putting down their business once business-related litigation would file against them. Every lawsuit would need defense cost, which is undoubtedly costly, even when the business owner is cleared of any legal liability for damages. Business Liability Insurance could help the insured business against alleged liability claims for bodily injury and property damages. It could also help pay for medical payments and could provide cost to defend the insured against lawsuits.

Bodily Injury and Property Damage Coverage

Coverage A of Business Liability Insurance could help pay for "bodily injury" or "property damage" that would arise from different business liability. These include the liability out of the insured's premises, operations, products, and completed operations. Also, it could help pay for the contractual liability of the insured company. Moreover, it could also cover independent contractors against their alleged harm to a third party person. However, insurance companies could only provide payments if the alleged "bodily injury" and "property damage" occurs during the policy period. Moreover, if an occurrence causes the liability and it takes place in the coverage territory. More importantly, if the insured business is legally liable for the losses of the third party person.

Covered Damages of Coverage A ("Bodily Injury" and "Property Damage")

Business Liability Insurance's definition of bodily injury includes disease, physical injury, death, and as well as sickness of a third party person. Mental injuries, including mental anguish, could be covered. However, coverage would only be applicable if the mental injury is secondary to the physical injury that the other person obtained from the insured business.

Personal and Advertising Injury Coverage

Business Liability Insurance provides coverage on a broad scope of personal advertising injury. It could cover different types of offenses that cause harm to another business entity or individual. It could cover offenses as listed below:

  • Wrongful Eviction
  • Invasion of Privacy
  • Libel or Slander of an organization, product, and service.
  • Copyright infringement in advertisements
  • False Arrest, Detention, and Imprisonment
  • Wrongful Eviction

However, there are also exclusions on this coverage. Insurance companies have the right to deny the coverage if it is proven that the insured has knowledge of falsifying information. Also, coverage could be revocable if the claims are due to the wrong description of prices, pollution-related claims, and criminal acts. Contact our licensed agents to know more about this coverage.

Medical Payments Coverage

Coverage C could reimburse the medical expenses incurred by the third party person on the insured's business premises or operations. This coverage is applicable to pay without the insured's legal liability. For instance, a customer accidentally procures paper cut injury on the lobby of the insured business.

Business Liability Insurance could provide reasonable medical costs for the expenses incurred, whether the company is legally liable or not for the injury. This system’s rationale is that the general public would be less likely to sue the insured business if they receive treatment at the very time of the injury.

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Business Liability Insurance Cost

The cost of Business Liability or General Liability Insurance greatly varies on the industry risk of the business. Generally, a lower-risk industry including offices such as accounting offices pays a lower premium than a higher-risk industry such as contractors.

For instance, contractors such as roofers are exceptionally exposed to a broad risk than a scheduler working from home. Moreover, businesses that are part of construction services and cleaning services often pay more because they often work with third-party person’s property.

Also, the limit of liability insurance could also affect the insured’s liability insurance cost. If the insured wants a higher coverage limit, then the insured must expect to pay more.

Exclusions of Business Liability Insurance

Professional Liability Insurance

Business Liability insurance is not allowed to cover claims regarding the insured’s alleged negligence due to its professional service. Therefore, to protect your business at all costs, you must purchase Professional Liability Insurance. This type is fundamental, especially to law firm offices, insurance brokers/agents, and other companies that offer clients advice. Professional Liability Insurance could cover alleged claims of losses to your client due to the insured’s professional negligence.

Property Insurance

General Liability Insurance wouldn’t be able to provide coverage to the insured’s property losses. Therefore, you must protect your business by purchasing property insurance. This protection could cover the insured’s premises and business personal property against specific caps of losses.

To better understand this protection, give us a call, and our licensed agents could further discuss how this insurance could protect your business.

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Business Liability Insurance policy is legally required by law and is exceptionally fundamental for all entrepreneurs. Also, every contractor must purchase liability insurance as they need to provide a certificate of insurance for every contract they are working on.

Each day, all business is in danger of any potential misfortunes that could emerge from its premises and activities. Could you stand to lose your business because of paying for the expense of your client's physical losses? Here at InsureHopper, our partnered insurance specialists could help you get the right coverage for Business Liability Insurance from A-rated insurance companies.
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