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Liability Insurance for Small Business

Updated 03:00 PM EST, Thu December 13, 2018

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What Is Liability Insurance for Small Business?

Liability insurance for small business, otherwise known as small business liability insurance, is a type of small business insurance coverage that helps cover costs your business may acquire from bodily injury claims and property damage claims that are made against your small business. This insurance coverage can help cover the costs of claims caused by personal injury, libel, slander, products, damage due to operations, and errors in advertisements.
 
Liability insurance for small business is important to consider, as each small business faces different risks. Many small business owners look for basic insurance coverage with a business owner’s policy, protect employees and their employer with workers’ compensation insurance, and protect themselves against a digital attack or data breach with data breach insurance coverage. Liability insurance will not protect your small business from everything, so it’s essential to consider these additional small business insurance coverages. To find the best coverage for your small business, talk to The Hartford and get a quote today.
 

Get Liability Insurance for Small Business

Liability insurance for small business includes claims for third-party bodily injuries, advertising injuries, and resulting medical payments. Many times, liability insurance is referred to as business liability insurance or commercial general liability insurance. The cost of liability insurance for small business is based on your specific business needs. The Hartford understands that your small business is unique and can help you find the right insurance policy for your needs – get a quote today for liability insurance.
 

When Do You Need Liability Insurance for Your Small Business?

Most businesses need some form of liability insurance coverage to protect against company property and to protect them when signing contracts. Liability insurance for small business can help pay for unexpected lawsuit costs, sign new contracts with clients, rent space for your business, and avoid bankruptcy.
 
This insurance policy coverage also helps customers feel confident in your small business because they know you can compensate them if you damage their property or hurt someone while on the job. It is essential to secure this insurance coverage shortly after establishing your small business.
 

How Much Liability Insurance Does My Small Business Need?

The amount of liability insurance coverage your small business needs depends on many factors including location, budget restraints, risk, and the amount of additional insurance your small business carries. Companies with high risks, such as a workout facility located on a river bank that is known for flooding, may consider more coverage than a low-risk business. A company which does not have a physical space to conduct business may opt for lesser liability insurance coverage.
 
Liability insurance for small business is an important insurance coverage type for your company, but it is just one type of coverage that should be considered. A business owner should budget for different types of insurance and determine their insurance needs by working with an insurance agent. This will protect not only the business owner but also the financial security of the business in the future.
 

Do You Need More Liability Insurance for Your Small Business?

Many types of businesses require general liability insurance including IT contractors, landscaping companies, general contractors, real estate agents, consulting companies, marketing companies, and more. Sometimes, these small businesses need more than general liability insurance to protect against claims fully. Other companies that may benefit from additional business insurance coverages include:
 
  • Small businesses that provide professional services
  • Small businesses that rent or own a storefront
  • Small businesses that use company-owned vehicles to transport employees or goods

What Is Not Covered by Liability Insurance for Small Businesses?

Liability insurance can help cover costs incurred from lawsuits, investigations, settlements, medical expenses, attorney fees, and damages. There are costs which are not typically covered by liability insurance for small business. Many times, employee injuries are not included, neither are professional liability claims, car-related claims, punitive damages, or intentional acts. These damages can be covered by additional business coverages.
 

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.