Commercial Liability Insurance Takes the Heat for You
Perhaps the most important base to cover when purchasing commercial insurance for your business – is liability insurance. Commercial liability insurance cover any injuries caused by you, your company or products/services to a third party. This means, if a product you manufacture has somehow injured the end user for instance; you will have coverage in case that end user sues you for damages. Or if you offer webmaster services, and one of your clients suffer losses, due to hackers taking advantage of poor security in the system you designed, you might also get sued. Again – you will be protected from the ensuing financial losses if you have commercial liability insurance. Liability insurance is mandatory by law in most places around the globe, so it isn’t really a case of whether or not you should have it. Rather, it is a case of getting the kind of business liability insurance you need. Now, your needs will obviously vary according to what you do for a living.
Some fields of work carry more risk with them than others, and some are subject to specific laws or regulations requiring you to have special insurance to legally do the work at all. Because of that, small business liability insurance can be as complex an issue, as that for a large company, but on the average, someone just starting their business will probably require a relatively simple package to begin with. Commercial general liability insurance may be enough depending on the work you do. If not, there are other types available for special needs:
Errors and Omissions Insurance
This form of insurance, which is also known as “E & O” for short, specifically covers an error on your part which causes damage to a third party. Perhaps a spelling error in a user manual for a product you manufacture causes misuse of the product, rendering it defect after a very short time. Or it could be a hotel guest making a reservation for 2 weeks in the finest suite in your hotel, but only being booked for 1 week due to a mistake on your part. Granted, there are cases where a simple apology and some form of quick compensation can solve the problem, but in many cases there will be large amounts at stake.
Malpractice Insurance
This is a form of professional liability insurance most commonly used by doctors and other professions – often related to medical- or healthcare work, but it could also be accountants, architects or others. In someplaces this is mandatory by law, but even if it isn’t, you wouldn’t want to be without it if you work in a profession that requires it. Malpractice insurance is what compensates your for financial losses incurred if a former patient/client sues your for malpractice. It is not cheap to get it, but by having it, you signal professional integrity to your clients (they will know that they can get compensation from you) while protecting your business. Money well spent.
Truck Insurance
This is obviously needed if you own and/or drive a truck as a part of you business. Given their large size and weight, trucks are usually not cheap to ensure, as they can do a lot of damage to people, property or other vehicles. You will also need truck insurance that covers damage to the truck itself, or compensation in case it is stolen, etc.
These are just some of the forms of liability insurance available. No matter what sort of business you conduct, it is very likely that there is a company able to insure you. Whatever you do, don’t go without it!
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