Why Do Companies Need Liability Insurance?

Running a business is no piece of cake, and the last thing companies want is to be issued a lawsuit by third parties. A report by the U.S Chamber of Commerce found that a single lawsuit can greatly affect a small business, with legal issues costing it more than $100 billion each year.

The general liability insurance sector was valued to approximately $62.84 billion in the United States in 2013, and has been estimated to grow to about 109.21 billion by 2025. Should the worst happen, it is always advisable to have a liability insurance coverage for your company to protect it from unforeseen circumstances.

Property Damage Liability

Property damage coverage is the most crucial aspect of liability insurance. This coverage is needed in cases where an employee causes damage to a client or customer’s property due to their negligence or because of an accident. For instance, a furniture mover may accidentally break or badly scathe a wooden item while taking it out of the house.

When this happens, liability insurance can help the business cover the costs of the damage caused by their company to another’s property.

Bodily Injuries Liability

The damage caused when a third party gets injured by some aspect of your company or due to its employees is covered by bodily injury liability. These injuries may entail instances such as a construction worker accidentally dropping a tool onto a passerby, or a customer slipping on the wet floor in your retail store.

If someone receives a bodily injury due to your company, liability insurance can take care of the harm caused and protect the company from lawsuits.

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Personal Injury Liability

Unlike bodily injury liability that is based on physical injury, personal injury liability is focused on verbal interactions and communication. If your company or its employees are sued for slander or libel, this form of liability coverage comes into play.

A lawsuit may be filed against your company, accusing you of a certain action. This can be very damaging for the company’s or the targeted person’s reputation, and can tarnish their character or position in the society. Libelous (written) or slanderous (spoken) statements that are defamatory in nature can harm your business’s face value and clientele.

This is where personal injury liability comes in and protects the company from defamatory lawsuits.

Tenant’s Legal Liability

If you rent your place of work—be it an office space, retail outlet, or a warehouse—from another party, you can be held accountable for any damage caused on that property. For instance, if there was an outburst or a fire broke out that harmed the area, the landlord will hold your company responsible for it.

The tenant’s legal liability insurance would cover these situations, providing repayment to your landlord.

To keep your business up and running, One Place Financial in Bellflower is who you need to get in touch with. Email us or call at (562) 867-5200 to get the most reliable commercial liability insurance!

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