Liability Insurance Coverage

Liability insurance will protect your business assets in the event you or your employees are negligent, cause bodily injury, or property damage to another. Liability insurance covers the cost of lawsuits stemming from accidents that cause bodily injury (i.e., a customer slips on your steps) or property damage (you sell a defective lubricant that burns out a customer's car engine), and other miscellaneous claims such as libel, slander and false advertising. Liability will not only pay the cost of the damages, but also the attorney fees and other costs associated with your defense in a lawsuit, whether or not the lawsuit has merit.

However, liability insurance will not protect you against claims arising from nonperformance of a contract, wrongful termination of employees, sexual harassment, or race and gender lawsuits. This is another good reason to carefully read your policy.

In order to protect the assets of your business, it is very important to purchase both adequate coverage and limits of liability when you purchase your business insurance. There is no sure answer about how much liability insurance to buy for a particular business. You should discuss liability insurance in detail with your agent.

• Commercial General Liability
• Umbrella Liability Policy
• Other Types of Liability Policies Available
• Alternatives to Buying Liability Insurance