Industry Insights

What Does Commercial Liability Insurance Cover?

Commercial Liability Insurance

Are you looking for a way to protect your business against potential liabilities and risks?

Look no further than commercial liability insurance. This type of coverage is designed to provide financial support should your business ever be taken to court or sued, shielding you from various legal claims that can arise.

Understanding what commercial liability insurance can cover is the first step in getting the protection your business needs. And this short guide will outline everything you need to know.

Follow along to discover what a commercial policy covers — you'll be glad you did!

Situations Where You Need a Commercial Liability Policy

Commercial liability insurance protects businesses from being sued or held responsible. Have you ever thought about what would happen if a customer slipped on the recently polished floor of your business?

What if an employee working at a customer's home caused a fire? What if an advertisement you put out resulted in legal action?

Preparing for every situation is the key to success as a business owner. A commercial liability policy can assist with these situations by offering financial and legal help.

What Does Commercial Liability Insurance Cover?

What else does commercial liability insurance cover? Liability covers legal costs and settlements, among other things.

The costs will be in relation to problems caused by your business operations. This could include something happening on your premises. For instance, someone slipping and falling could be a covered claim.

Slip, and falls can become serious situations in an instant. About 1 out of every 5 older adults sustains a serious injury when they fall.

If the fall results from your employee leaving something on the floor, you'll certainly be facing a lawsuit. But your company will have financial assistance if you have the right liability coverage. Instead of the lawsuit draining your company's finances, you'll be able to weather the situation with grace.

How Much Does Commercial Insurance Cost?

The cost of commercial insurance will be different based on a few things. These things include how much protection you need, where your business is located, how big your business is, what kind of business it is, and how risky it is. Talk to an experienced insurance agent to get a quote that works for you and the amount of protection you need.

Find an Experienced Insurance Agent

It is very important to work with an experienced insurance broker or agent when you are trying to find the best insurance for your business. They will be able to help you get a good deal on your coverage.

Experienced agents know what's available in terms of policies. They'll be able to customize a plan suitable to meet all of your unique needs—at an affordable price!

Getting Commercial Liability Quotes

Make sure you are adequately covered - research, shop around and compare quotes to find the best policy for your business. But before you start getting quotes, take some time to evaluate your business needs and coverage requirements. You clearly understand what type of coverage you need to get the best quote possible.

Ask yourself questions such as: How many employees do I have? Do I need property insurance? What kind of risks does my business face?

Once you know exactly what liability coverage you need, it's time to start getting quotes. Compare different policies and ask questions until you understand all the details of each one.

Quote comparison helps ensure that the policy you choose fits your individual needs. Try to find companies that offer discounts or special incentives if they are available.

Common Types of Commercial Liability Policies

There are 4 common types of liability policies you should familiarize yourself with. First, commercial general liability protects you from losing money. You'll have protection if someone sues you because they say your business caused them harm.

Property insurance provides coverage for damage or loss of assets. The loss could be due to various factors, such as fire, theft, and storms.

Business interruption insurance protects you if your business has to close for a little while. But the closure has to relate to a covered loss. 

For instance, many business owners relied on business interruption insurance to help during COVID. In the second quarter of 2020, over 700,000 companies closed. 

There's also cyber liability. This helps protect your business from people who want to steal information or attack your computer systems.

What Is an Umbrella Policy?

Look into securing an umbrella policy too. An umbrella policy provides an extra layer of protection against certain liability claims. This insurance is a type of insurance that gives you more protection than some other types of insurance, like auto or homeowners insurance. 

The coverages are designed to protect your assets and finances if you are found liable for damages. Specifically, damages resulting from personal injury, property damage, or libel.

The coverage can extend beyond the limits set by primary policies like auto and home insurance. That way, additional costs associated with a lawsuit will be covered up to the limit specified in your umbrella policy. This can include court costs, attorney fees, and any judgments against you.

Umbrella policies provide coverage for primary policies that don't offer enough protection. For example, an umbrella policy could provide liability coverage for rental properties owned by the insured individual. This coverage might not be available under their homeowner's insurance policy.

Additionally, it may cover losses related to libel or slander. These damages often have high financial consequences but aren't typically included in homeowners' or renters' policies. An umbrella policy can also provide peace of mind by giving you extra protection in case of a costly lawsuit or other legal action.

Get Started With a Commercial Liability Policy Today

Taking out the right commercial liability insurance for your business will ensure that you are covered no matter what happens. Don't wait to safeguard your future.

Here at Otto Insurance Group, we're committed to finding the right insurance coverage tailored to your business needs. Contact one of our experienced insurance agents today. They will be able to help determine which kinds of policies best fit your needs so that you can get the best coverage.

Find affordable coverages now. Contact us today to get started!

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