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When Is Liability Insurance Needed?

Updated 12:23 PM EST, Wed July 3, 2019

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Do I Need Liability Insurance?

As a business owner, general liability insurance can be essential for protecting your business and your employees in the event of a lawsuit. Also known as business liability insurance, this coverage helps protect you from claims alleging:
  • Bodily injury. For example, say someone trips, falls, and injures their ankle while shopping in your business. Your business liability insurance can help cover the costs associated.
  • Property damage. For example, say one of your employees damages a customer’s property while working on a construction job. Your business liability insurance can help cover the costs associated.
  • Libel. For example, say one of your employees writes a defamatory statement about another business online. As a result, they file a lawsuit against you. Your business liability insurance can help cover the costs associated.
  • Slander. For example, say one of your employees spreads rumors about another business. When that business finds out, they file a lawsuit against you. Your business liability insurance can help cover the costs associated.

3 Reasons You Need Liability Insurance

Generally most businesses need liability coverage. Reasons business’s like yours need liability coverage include:
  • Signing contracts with other companies
  • Signing a contract for an office lease
  • Applying for a professional license

How Much Liability Insurance Do I Need?

To determine how much liability insurance you need for your business, you’ll want to ask yourself a few key questions. These include:
  • What type of business do you have?
  • How many employees do you have?
  • Where is your business located?
  • What insurance protection is required?
  • Is liability coverage required?
  • What coverages are essential for your liability insurance policy?

What Is Required of a Business That Applies for Liability Insurance?

In order to receive liability insurance, companies will have to determine the amount of risk your business poses. This is done by analyzing your past history of insurance claims. During this process, your type of business will also be taken into consideration. If anything stands out as a risk, they may not offer you a policy.
Let’s use a construction business as an example. This type of company may have a higher liability risk than an accounting firm. Say an employee is operating construction equipment and accidentally damages a part of their customer’s house. A commercial general liability insurance policy can help cover the damages.
However, in most cases you will be able to successfully obtain coverage for your business. At The Hartford, we offer extensive coverage options that may fit your needs perfectly.

Business Liability Policy Coverage Limits

Business liability insurance from The Hartford can provide your business with a range of protection. Coverage includes:
Property Damage
– Helps protect other’s property. This includes other individuals or business’s houses, buildings, and vehicles. It can also include other structures such as fences or mailboxes. For example, say you accidently drive into a customer’s mailbox and damage it. Your property coverage can help cover the costs of repairing or replacing it.
General Liability – Helps protect your business from any damages that occur to someone else’s property. For example, say you and your employee damage part of a customer’s home while delivering merchandise. Your general liability coverage can help cover the costs associated.
Bodily Injury – Helps protect you from claims of bodily injury. For instance, say a customer gets injured while shopping in your store. Your liability insurance can help cover the costs associated with the medical bills.
Advertising Errors – Helps protect you from claims of copyright infringement. For example, a competitor can sue you for copyright infringement if your advertisements are very similar.
Medical Payments – If someone is injured at your business, a general liability insurance policy can help cover their medical costs.
Reputational Harm – This helps protect you and your business from claims of libel, slander, wrongful eviction, violation of the right of privacy, malicious prosecution, and more.
Keep in mind that these coverages only help protect you up to the limits of your individual policy. To ensure you have the correct coverage amounts, speak with one of our representatives. You can reach us at 855-829-1683.

What Is Typically Not Covered by Liability Insurance

Your liability insurance protection can help cover a lot but it won’t cover everything. Some examples of what it doesn’t cover include:
  • Work-related illnesses or injuries suffered by employees. A workers’ comp insurance policy can provide these employees with benefits to help them recover from a job-related illness or injury.
  • Damages to your company’s vehicle. These types of claims can be covered by a commercial auto insurance policy.
  • Any employment issues. For example, an employee can file a claim against you for harassment. General liability insurance won’t cover this claim. An employment practices liability insurance coverage can help cover your costs to resolve this claim.

Do I Need Liability Insurance? Here Are the Facts

Still not sure if you need liability insurance? Consider these facts:
  • A worker is injured every 7 seconds while on the job. That equals 12,300 a day.1
  • There were 104,000,000 production days lost due to work-related injuries in 2016.2
  • Service, Transportation, Manufacturing, Installation, Maintenance, Repair, and Construction jobs are the most common occupations with work related injuries.3
  • The most common injuries that keep workers off the job are sprains, strains, tears, soreness, pain, and cuts.4

How Do I Get Liability Insurance?

For more information on liability coverage, contact a representative from The Hartford at 855-829-1683Get a quote today.
1, 2, 3, 4 “Workplace Injuries,” National Safety Council.

Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. In TX, this insurance is written by Sentinel Insurance Company, Ltd., Hartford Casualty Insurance Company, Hartford Lloyd’s Insurance Company, Property and Casualty Insurance Company of Hartford, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Hartford Accident and Indemnity Company and Hartford Fire Insurance Company. In CA by Sentinel Insurance Company, Ltd. (CA license # 8701) and its property and casualty insurance company affiliates, One Hartford Plaza, Hartford, CT 06155.
The Hartford® is The Hartford Financial Services Group, Inc. and its property and casualty subsidiaries, including issuing company, Hartford Fire Insurance Company. Its headquarters is in Hartford, CT.