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Commercial liability insurance provides critical coverage and peace of mind for your business. The policy protects your business from claims resulting from bodily injury or property damage for which your business could be liable.
Don't Shirk on Coverage Limits
Because this is the insurance that protects you when customers, contractors, or passers by are injured on your property or as a result of one of your products it is important that you have adequate coverage. In addition to medical payments and settlements, this liability insurance can also cover the cost of legal representation and investigations.
Do Make Sure Your Policy is Comprehensive
Within your commercial liability insurance policy, you should have the following provisions:
- Coverage for accidental damage or fire to rented property
- Coverage for injury that results from false arrest, detention, or imprisonment
- Coverage for libel or slander
- Accidents that occur on your owned or rented property
- Damage that occurs to neighboring property due to your negligence
- Injury or damage that occurs because of your product or service
If it's possible your employees may put you at risk, such as in retail, expand your policy to cover their actions as well. Often, a claim may be filed against the business but also name a specific employee, so it is important to make sure that your policy is broad enough to cover the claim.
Don't Sign the Insurance Agreement Without Understanding the Terms of Your Policy
It is important to understand the terms of your policy. Read the agreement carefully to ensure that you are obtaining adequate protection.
Do Shop Around Before Buying
Before purchasing commercial liability insurance, shop and compare among several insurance companies to make sure you are obtaining the best possible coverage for the best price. Keep in mind that if you are involved in litigation, your insurance company will be involved in your defense and any necessary investigation. Make sure you choose an insurance company you can trust that has a staff who is capable of assisting you should there be a need.
Don't Assume the Manufacturer of the Products You Sell Will Protect You
If you sell it in your store, even if you did not manufacture it, you may have some liability if what you sell results in injury or damage to your customers. Never assume that the manufacturer will have enough coverage to protect you.
