As a business owner, you more than likely understand the importance of having the right insurance policies in place, just in case. This means that you have a standard business policy that includes coverage on your building, your products, and your equipment. You also need to have a liability insurance policy. These policies are designed to cover many different expenses, such as legal fees and medical costs should someone slip and fall on your business’ property.
Why are these additional liability policies so crucial? Here are some of the many things you need to know about liability insurance for your growing business.
There Are Three Types of Liability Policies to Consider
When it comes to liability insurance, there are three main types that can apply to your business. They are:
Product Liability – If your business manufactures goods, no matter the type, you need to have a product liability policy. This policy can cover the costs of product recalls and replacements, lawsuits when someone is injured by your products, and more.
Commercial Liability – This is a general liability policy that tends to be grouped with other business insurance types in a business owners’ policy. It can cover things like medical expenses should a customer or salesperson get injured on your company’s property, as well as damages to the building itself.
Professional Liability – If your business handles services instead of goods, then it needs to have a professional liability plan in place. This type of insurance covers industries like accounting, tax preparation, bakeries, photographers, and more. It’s in place should something go wrong while providing a service to your customers.
Liability Insurance Has Limits
Now that you understand the different types of liability policies, it’s important to note that each has limits. You need to select the policy that best fits your specific business criteria, such as commercial or product, but you should also choose one that has ample coverage, so you don’t end up paying for things out of pocket.
Don’t Forget About Umbrella Policies
In addition to the types of liability insurance listed above, there are also umbrella policies that provide additional coverage beyond them. These policies are good to have, just in case you need them.
Liability Insurance for Your growing Business
Since liability insurance has limits and there are different types of plans, like commercial and professional, you’ll need to stay on top of them as your business grows. For example, if your company starts selling goods as well as offering services, you’ll have to get an additional policy for those physical items. Ensuring that you have the right kind of insurance in place is something that you should include in your business’ growth plans.
Have Questions? Contact Spivey Insurance.
If you’re wondering if your business has a large enough liability insurance policy, reach out to Spivey Insurance. Our knowledgeable agents can help you determine amounts and limits in order to put together a policy that will grow along with your company.
