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Liability Insurance for the Small Business

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When you are an owner of a small business, you have many responsibilities and even if you are operating your business carefully and you follow all of the small details, sometimes a client may consider you didn’t do your job well and you’ll end up with a lawsuit. What you need to do, in order to protect your assets and your business from the losses that potential mistakes can cause, is a liability insurance policy. The business liability insurance can help you in situations where your mistakes of negligence have done some damage to your customers, and they are now raising a claim against you. When you own a small business there is some risk for your business and personal liabilities. When you have business liability insurance, your assets and financial state are protected and secured.


The main task of business liability insurance is to protect your small business in case there is a lawsuit against you for doing a personal injury or property damages to one or more of your clients. Liability insurance will in most cases cover the entire amount of the legal costs and the amount that is determined from the law for you to pay. Because of the many different types of businesses, the business liability insurance can be purchased from several different companies, so it can cover all of the possible events that are in connection with your business area. The general liability insurance is the form of liability insurance for the business that provides the main coverage of liability.

This form of liability covers, property damage, claims of injuries or advertising claims. The general liability insurance in most cases is the only form of liability you need for your business, but depending on your field of business, you might need additional coverage. This form of liability provides protection and coverage against most forms of malpractice, human errors, negligence and poor attention to clients and omissions. For some professions this type of liability insurance is mandatory. Doctors usually have such type of liability so they can practice as professionals. Professional liability is also common for lawyers, architects and all other professionals who are offering services. Even for the most precise professional, mistakes are possible option, so professional liability is a good way to secure yourself from mistakes and negligence.


Providing services is not the only type of business that needs liability. Product liability is also more than advisable to have, if you own a business that is manufacturing and selling products. It is not uncommon for a mistake in the manufacturing process to cause injuries to the consumers of your product, so liability for product manufacturers is also not to be neglected.

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