If you are like most business owners, one of your biggest worries may be that your business will someday get sued. No matter what type of industry you are in, the chances of a lawsuit are higher than we would all like them to be. That being said, absolutely no business can afford to be unprepared for a lawsuit. Having adequate liability business owners insurance will protect your business assets should the business be sued for something it did (or failed to do), which resulted in injury or property damage to someone else.
Business owners insurance with liability coverage extends not only to paying damages but also to legal fees and other costs involved in defending against the lawsuit, whether or not the lawsuit has merit. A standard business owners insurance policy provides liability coverage, as does a separate policy that is known as a commercial general liability (CGL) insurance policy. Typically, commercial liability insurance, whether purchased in a separate policy or as part of a standard business owners insurance policy, will cover bodily injury, property damage, personal injury, or advertising injury. Additionally, the medical expenses of those people (other than the business employees) injured at the business or as a direct result of the operations of the business are also covered.
Commonly excluded from both types of liability insurance polices are lawsuits by customers made against a business for nonperformance of a contract, as well as by employees who charge wrongful termination or racial or gender discrimination or sexual harassment. |
