Businesses of all sizes need to have some type of commercial liability insurance coverage in order to protect themselves from legal costs and damages if their business is accused of causing property damage or bodily injury. If someone becomes injured while on your business property, the right insurance coverage can protect you by providing you with the financial means necessary to pay out their claim.
What Types of Liability Exposures Are Covered?
While not all commercial liability insurance policies offer the exact same types of coverage, most provide coverage for the following types of liability exposures:
- Indirect/contingent exposure
- Operations and premises exposure
- Completed operations and products exposure
Indirect/contingent exposure relates to negligent actions performed by subcontractors or independent contractors hired by your company. Insurance coverage can protect you financially from errors and actions performed by these individuals. Operations and premises exposure coverage offers protection to your business against any property damage or bodily injury caused by both on and off-site business operations. Completed operations and products exposure offers financial protection in the case that property damages or bodily injury claims are brought against your company due to faulty operations or products.
Each of these important types of liability exposures can potentially bring a company down if they are not adequately prepared with commercial liability insurance coverage. If your business does not have enough liability insurance coverage, talk to your insurance agent and make sure you get the right policy for your needs.