Operating a business is complex, as you have to deal with risks that are associated with it. You need to consider purchasing business liability insurance to protect your business from financial loss in the event of lawsuits or third party claims that are common in today’s world of litigation. There are a number of insurance policies available in the market, but you need to purchase one that suits your business’ needs and covers every risk that your business is likely to face.
In this article, we will discuss the importance, benefits, types, costs and claims covered by business liability insurance.
What is business liability insurance?
Business liability insurance protects business and its owner in case of claims made by third party for physical injury or damage to the property. The coverage includes damages due to lawsuit in addition to legal costs.
Types of business liability insurance
There are four main types of business liability insurance, purchase the one that suits your business’ needs.
Types of claims covered by liability insurance
Costs covered by business liability insurance policy
Business liability insurance explicitly covers three major damages caused to the third party by the policy holder. Covers include compensatory damages, general damages and punitive damages. In case of compensatory damage claim, financial losses of the third party due to an injury will be covered. In general damage claims, non-monetary losses such as mental torture, pain and suffering by the third party are covered. Punitive damages are additional charges or penalties, made by the third party, which the policy holder should pay.
Benefits of business liability insurance policy
Having business liability insurance transfers the risks of financial loss, caused due to the claims made against the business, to the insurer. The insurance company not only pays for the damages but also pays the legal costs on behalf of the policy holder. In case of settlement by the claims made by third party, the insurance company will pay up to the limit of the policy holder's coverage.
Business liability insurance is, thus, useful for your business as it protects your business from unexpected financial losses.
Keystone.ie is Ireland’s premier supplier of public liability insurance and business insurance solutions to Irish industry. We offer a broad range of builders insurance, construction insurance, and business liability insurance products. Keystone Insurance Limited offers great value to contractors and general business customers.