Get Great Coverage in Minutes
All it takes is a few clicks.
Liability Insurance Coverage
Updated 01:16 PM EST, Fri September 4, 2020
What Is Liability Insurance Coverage?
Many small businesses need liability insurance to help them run a successful company. Liability insurance coverage helps protect you from claims that can come up during normal business operations. This includes claims of:
- Property damage
- Bodily injury
- Employee injuries and illnesses
- Mistakes in the professional services given
We can help you get the right coverage for your business. Whether you’re asking “what is liability insurance” or need to know what types of coverage you should have, our specialists can help.
Types of Liability Coverage
General Liability Insurance
General liability insurance helps cover claims that your business caused:
- Bodily injury
- Property damage
- Reputational harm
- Advertising injury
Professional Liability Insurance
Of course you want to run your business perfectly, but accidents can happen. If they do and they cause your client to lose money, they can sue your business. That’s when professional liability insurance can help. You may want to get this coverage if you offer professional services to customers. Some states require certain businesses to carry this type of insurance, so make sure you check with your local laws to see if you need it.
E&O Insurance
E&O insurance stands for errors and omissions insurance. These are different names for professional liability insurance, and they provide the same coverage.
Workers’ Compensation Insurance
Most states require employers to carry workers’ compensation insurance. This coverage gives benefits to an employee with a work-related injury or illness. It can help:
- Cover medical bills
- Pay for ongoing care
- Replace lost wages
Liability Car Insurance
Commercial auto insurance helps protect you and your employees on the road if you’re driving for business. When it comes to how much coverage you need, that varies by state. Your commercial auto policy will likely include the minimum coverage for bodily injury and property damage liability insurance. This helps cover claims if you or an employee are at fault of a crash that damaged someone’s property or left someone injured in an accident.
You can also add optional coverages to increase your protection, like comprehensive coverage or, in some states, personal injury protection (PIP).
Cyber Liability Insurance
Cyberattacks and data breaches are on the rise, which leaves sensitive or confidential information your business stores at risk. Cyber liability insurance and data breach coverage can help protect your business so that it’s prepared to be able to respond to and recover from an attack. This coverage can help pay for:
- Expenses to notify impacted customers or employees of a cyberattack or breach
- Credit monitoring services to affected individuals
- Advertisements to try to improve your business’ reputation
- Judgments and settlements from a lawsuit
Employment Practices Liability Insurance
Your current and former employees can sue your business for discrimination, harassment or wrongful termination. To help cover this kind of claim, you’ll need employment practices liability insurance. Without it, you’d have to pay to defend your business or any judgments and settlements out of pocket.
Management Liability Insurance
Businesses with directors and partners face a variety of risks. Our management liability insurance includes five types of coverage to help protect these employees from financially devastating lawsuits:
- Directors and officers (D&O) insurance
- Employment practices liability insurance
- Fiduciary liability insurance
- Crime insurance
- Kidnap/extortion and ransom insurance
Commercial Umbrella Insurance
If a liability lawsuit exceeds your policy limits, your business would have to pay the difference. Commercial umbrella insurance can help you in these situations. It extends the liability limits for some of your policies. So, if a customer falls in your business and their medical bills exceed your general liability insurance limits, your commercial umbrella policy can help cover the rest of the costs.
How Does Liability Insurance Coverage Work?
For example, one of your employees is making a delivery to a customer when he swerves off the road and crashes into someone’s fence. The homeowner sues your business for damages. Your commercial auto policy can help cover the repair or replacement costs to fix the damaged fence. Without this coverage, you’d have to pay for the repairs out of pocket.
Check your liability insurance policy to see how it works. Your paperwork will tell you what’s covered and how to file a claim.
Get a Quote for Liability Coverage Today
It can be hard to know which liability insurance coverage your business needs, but we can help. As an insurance company with more than 200 years of experience, we’ll explain all of the risks your small business faces and will work with you to get the products and services you need. Get a quote today to learn more.
Common Questions About Liability Insurance
What Is the Recommended Liability Coverage for Auto Insurance?
Most states have a minimum amount of liability coverage drivers need to carry. Your commercial auto insurance quote will cover your state’s minimum coverage amount for bodily injury and property damage liability insurance. You can add more liability coverage if your business needs it. The more coverage you have, the more protection you and your employees have on the road while driving for business.
What Do General Liability Policies Cover?
A general liability insurance policy can help cover claims of:
- Bodily injury
- Property damage
- Reputational harm
- Advertising injury
Do You Need Liability Insurance if You Have an LLC?
Yes, you likely need liability insurance even if you have a limited liability company (LLC). LLCs separate your personal assets from your business, but your company still faces liability risks. Without liability insurance, your LLC would have to pay for claims on its own, and few businesses can survive a significant liability claim.