What Are The Different Types Of Business Liability Insurance?

Liability is a term, which encompasses all such negligent actions of a person, which can result in serious physical injury, financial losses or stress to another person.

Every business owner, irrespective of the scale of his business, need to secure his business against unexpected liabilities by taking business liability insurance. Business liability insurance covers all the expenses that may be incurred due to your negligence or due to any discrepancies in the products or services offered by your business.

Business liability insurance supports you financially by paying the costs to compensate for the third party damage caused and therefore, does not allow you to feel the pinch in your pocket. In addition, this kind of liability insurance also covers all the damage caused to employees and clients, who may have been suffered damage either due to your business negligence or due to some kind of accident in your office premises. The damage costs cover the legal expenses (in case someone sues you for negligence or for business misconduct), as well as the medical costs (which include the expenses for hospital stay, doctor?s fee, treatment, medication, as well as the compensation for lost of man hours).

There are 3 different types of business liability insurance and depending on your business risks you can select any one of these 3 types ?

The first type of business liability insurance is the general liability insurance, which is also referred to as commercial general liability. It offers the basic protection to your business against the most common liability risks, such as property damage claims, advertising claims or physical injury claims. It covers the legal costs for this kind of lawsuits filed against your company. The general liability insurance covers the claims made not only by your employees injured within or outside your office premises, while they are on an official duty, but also covers the injury claims of clients and customers within your property premises.

The second type of business liability insurance is called as professional liability insurance, which is also, knows by the name of ?errors and omissions? coverage. It is compulsory for professionals (such as surgeons, doctors, dentists, plastic surgeons, or bankers and financial advisors) to obtain professional liability insurance to protect their business and themselves from third party liability claims, such as mental stress, physical injury or financial loss incurred due to the oversight, negligence, technical mistakes, or malpractice by these professionals.

The third type of business liability insurance is called the product liability insurance. This kind of insurance is meant for those businesses which repair, sell, or manufacture any products. The coverage costs pay for those claims which are made by people who have either been injured after using your products or whose property has suffered extensive damage after the use of your products. The coverage costs can vary from case to case, depending on the risk potential of your product and also depending on the degree of damage or injury afflicted to the person who has filed the claim.

Susan Reynolds is the webmaster for a leading South African Insurance Portal that provides consumers with the best Commercial Insurance Options.