Commercial Liability 101: Things Every Business Owner Should Know

28 December 2021
 Categories: , Blog


One of the things that many business owners underestimate is the importance of commercial liability insurance. There are a lot of mistaken assumptions that can leave business owners vulnerable in times when they need protection the most. If you are a business owner that doesn't have general liability insurance for your company, it's important that you understand the facts about this type of coverage. Here's a look at a few of the things that you need to know.

No Business Is Too Small To Benefit From General Liability Insurance

You might think that your small business just isn't big enough to worry about general liability insurance. The fact is that even sole proprietorships should consider the protection afforded by this type of insurance. Every business owner is vulnerable to liability risks and hazards, and you should take that risk seriously no matter how big or small your business might be. Customers, clients, and vendors can still file lawsuits against your company no matter its size, especially if they are injured on your property.

Home-Based Businesses Can't Rely On Homeowner's Insurance

You might have assumed that your home-based business was covered under the liability protections afforded by your homeowner's insurance. This is often a mistaken assumption because most homeowners' insurance policies won't extend coverage for any kind of business on the property. Any insurance related to business operations would require the homeowner to carry a business liability policy as well.

Commercial Liability Umbrellas Are Versatile Policies

Sometimes, people assume that commercial liability insurance only protects you from liability for your actual business operations, such as if someone is hurt by your product. However, most commercial liability policies are general liability umbrellas, so they extend coverage for most any type of liability claim. Just make sure that you understand your policy limits and covered losses ahead of time so that you can take steps to cover any gaps in your insurance if necessary.

Commercial Liability Doesn't Apply To Employer Suits

One thing that every employer should understand is that their commercial liability insurance isn't an employer protection policy. If you're concerned about wrongful termination, employer mistakes, and similar issues, you'll need to talk with your insurance agent about adding an employer liability policy as well. Often, these can be added as an additional line of coverage when you already have a general liability policy.

Talk with your commercial insurance agent today for more help and information about your company's liability insurance needs.

For more information on general liability insurance, contact a company like Contractors Insurance.