Understanding Liability Insurance for Businesses

Your business must manage many risks and exposures to ensure financial security and ongoing stability. While many risk management efforts may focus on your company’s assets and interests, it may also be necessary to consider how incidents for which you may be responsible could impact others. Suitable liability coverage is critical if an accident, error or other mishap inflicts losses on clients, customers, guests or other parties.

What Types of Liability Insurance Should My Business Have?

There are many types of liability insurance that your business may need to consider. Like general business insurance needs, essential liability coverage may be influenced by many factors, including your company’s location and the industry in which it operates. Consider how the following types of liability coverage may help provide financial protection:

• General liability insurance—This type of insurance can financially protect your business from many common incidents from which other parties may accrue losses, including bodily injuries, property damage and reputational harm.

• Professional liability insurance—Also known as errors and omissions insurance, this type of policy can help pay for legal expenses and financial losses should a client or other party accuse your business of making mistakes or oversights that led to their financial losses.

• Cyber liability insurance—Cyber incidents could significantly impact you and your clients in the current digital era. If a data breach or cyberattack affects other parties who have entrusted you with sensitive data, this coverage may be critical in limiting losses.

• Commercial auto liability coverage—If your company uses motor vehicles for business purposes, this type of coverage can help mitigate losses arising from incidents involving other parties and may even be legally required.

• Commercial umbrella insurance—Should the coverage limits of other forms of liability insurance be exhausted, this type of policy can render additional aid, potentially protecting your business from significant out-of-pocket expenses.

We’re Here to Help

At The Wyatt Agency, we’re well-versed in the world of business insurance and understand the importance of sufficient liability coverage. Contact us today to begin exploring your options or to compare tailored quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.