The Basics of Property Liability Insurance

Property liability insurance offers your business protection if it is sued for damages or injury occurring at your location or caused in someway by an individual’s interaction with your business. It can even protect you if you are not at fault but sued anyway.

The Right Amount of Coverage Today

Many business property insurance policies offer coverage for structures and liability. That type of general liability coverage might not be enough. Today, many attorneys are advertising to find people who believe they have been injured or harmed by a business. Often, offers of legal service are made on a contingency basis so the individual has no financial risk in suing you. Additionally, juries are unpredictable in assessing blame and damages.

A good place to begin assessing your coverage needs is to look at the industry in which your business operates. What is the recent litigation experience in that industry? What types of damages have been awarded and for what reasons? Clearly, if you are in a business that is more likely to face lawsuits and damages, you need additional liability protection.

You need protection not only to pay any damages but also to pay your legal expenses. Even if you prevail in a case, your legal expenses can be significant.

Finding the Right Liability Insurance

The place to begin searching for property liability insurance is with the current carrier of your property insurance. Work with your agent to determine your needs and the associated costs.

One way to save on insurance premiums is to seek a discount for keeping your various lines of coverage with one company. However, don’t let this stop you from comparing quotes from other companies.

A key element in selecting a property liability insurance is the customer service record of your potential provider. Fighting a liability suit is hard enough without fighting your insurance company as well.

You can take steps to control the costs of your property liability insurance and this begins with your insurer. Ask what steps can be taken to make your business a better insurance risk. Safety programs, annual property inspections and employee background checks are just a few areas insurance companies will be willing to consider in determining your premium for property liability insurance.

Doing what you can to control costs, from searching for competitive bids to improving your safety operations is important, but cost should not be the sole determining criteria in choosing property liability insurance. You want to be certain you work with a company that is financially sound, offers superior customer service and has competitive prices.


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