Understanding Insurance For Your Business

Depending on your business needs, liability insurance can be purchased in many forms.

General Liability Insurance offers protection from third party claims in the case of a business being sued for something they may or may not have done. Injury claims, property damages, or advertising claims.

The liability coverage limits are set for what a business needs are by how much risk is involved.

When considering liability insurance for your business, first examine what type of business it is.

A manufacture that has a higher injury risk, because of say heavy machinery should purchase a policy with higher coverage. A smaller business with less risk or may want to go with a smaller policy.

Doctors require coverage to practice in certain states. Technology consultants often need coverage in independent contractor work arrangements. Depending on your profession, it may be a legal requirement to carry such a policy.

Employer liability is also known as worker’s comp, and it is a mandatory form of liability insurance coverage that all businesses must carry. While it sounds like it is intended to protect the employee, which it does to some degree, it is actually protection for the employer in case of injury, job related illness, or other damages for which the employee might sue the company.

Auto Liability insurance is one of the most popular options because it costs less than other coverage such as Full Coverage.

In the case of an accident, liability covers the other party’s losses, and protects you from being responsible. While this may save you from a law suit, it still leaves leaves you and your property vulnerable and you may have to pay out of pocket for your damages.

Full Coverage Insurance will pay for both your vehicle and the other vehicle involved in an accident as well, property damage and medical expenses for both parties. When you purchase a vehicle from a dealership and are making payments, it is required you have full coverage. This makes sense, because the company you purchased the vehicle from and you are covered and that is what insurance is all about, protection.

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