What Does Commercial Liability Insurance Cover?

While commercial property insurance may be fairly self-explanatory, many people are unfamiliar with commercial liability insurance. This type of coverage protects a business from the financial obligations associated with third party liability risks, such as if a guest gets injured on business property or by a business’ product. Commercial liability insurance can cover medical expenses, legal defense costs and any settlement that may be awarded if your business is successfully sued. 

Liability claims may seem unlikely, something that you only see on the news, but these lawsuits have grown increasingly more common over the years. And while an annual commercial liability premium may seem pricey, it’s merely a drop in the bucket when compared to the hundreds of thousands of dollars that a lawsuit could cost your business. 

However, just because your business has commercial liability insurance doesn’t mean that you’re shielded from all lawsuits. Anyone can file charges against your business, whether grounded or frivolous. But if a lawsuit should arise, this coverage provides monetary benefits to cover the associated costs, which can be very high, even if the lawsuit is frivolous. In some cases, this financial aid could be the difference between staying in business and closing the doors forever. 

Different businesses have different risk levels. For instance, a construction company may require more liability coverage than a marketing office. Speak with a qualified independent insurance agent, who can evaluate the unique needs of your business and recommend coverage limits and shop for policies on your behalf. 

Get the protection you need. Call Primero Insurance Agency for more information on general liability insurance.