Anyone owning or operating a business, large or small, will need liability insurance. Having liability insurance protects both your business and personal life from financial ruin. It will protect your small business in a lawsuit for personal injury or property damages. Normally damages resulting in a lawsuit along with legal costs are covered with liability insurance.
Some things you can be personally liable for include:
* You have signed a personal guarantee for a loan.
* Personally you have injured someone.
* You have acted in an irresponsible or illegal manner.
* You do not operate your business as a separate entity.
This may be the only type of liability insurance you need depending on your business. This insurance is the main coverage to protect you from; injury claims, property damages, and advertising claims.
Professional Liability Insurance, also known as errors and omissions, protects business owners providing services to the public. You will be protected against malpractice, error, negligence and omissions. Your chosen profession may be legally required to carry professional liability insurance. Doctors require coverage to practice in certain states.
This type of liability insurance is designed for businesses selling or manufacturing products. This protects the business in the event someone becomes injured as a result of using the product. Depending on your business type, the amount of coverage and level of risk will vary.