Legal Liability or General Liability insurance is there to protect your business against financial loss resulting from allegations or claims of bodily injury or property damage caused to others by you or your employees. A wide variety of exposures from various sources can give rise to a liability claim. Major sources of liability for businesses include:
Where a third party (a different person to those in the business such as a client or visitor) becomes injured arising from the activities of your firm. Examples include a customer slipping or tripping over something on the floor left by an employee.
Product liability exposures exist when you manufacture, distribute or sell a product. An example could be Imagine you’re a furniture manufacturer and your are sued by the parents of a child that experienced brain injury due to suffocation in a crib that your company made. Your products liability insurance would pay for the cost of your defence, in addition to the actual damages awarded by the court. Click on this brief video for another perspective
These liability exposures exist when you own premises. So, if a client trips and falls on a broken step that you didn’t fix up or maintain properly and as a result you were found negligent, property owner’s liability insurance will pay for defence costs and damages due to the injury. Simply, you are responsible as a property owner against injuries or property damage caused to other people arising from the building.
Contractors have significant liability exposures relating to the work a contractor has performed and finished. For example, a three level walkway at a hotel gave way during a concert and many people were killed. When the contractors that constructed the hotel were sued for negligence, they were protected by the liability attached Contract Works or Construction Risk policy.
All businesses, including home-based operations, benefit from adequate general liability coverage. And just because you work from your home doesn’t mean business liability insurance isn’t essential. A client who comes to your house for a meeting could slip and fall, and if you don’t have business liability insurance in place, you can be caught without protection.
If you need business liability insurance, or if you just want to learn more about this cover, CPR Insurance Services can help. We have helped many businesses protect against these liability exposures. Our experienced liability experts will help you obtain quality, cost-effective Liability insurance coverage – tailored for your business’s unique needs