Liability Insurance – Why What You Don’t Know Can Cost You

If you lack liability insurance, it can cost you money and possibly your assets and livelihood. Liability insurance is important for all homeowners, business owners and vehicle owners to carry to protect against damage and injury claims that might easily occur. Even in the best of situations, accidents happen. Should someone slip and fall at your home or business location and become injured, you are liable for paying for medical care, emotional trauma and other expenses. If negligence is evident, the damage awards levied by a court jury could be astronomical.

There are many accidents that can happen just from acts of nature. Fires, tornadoes, storm damage, hail, snow, ice and earthquakes may be covered by general property insurance. Accidents that involve harm to people usually fall into the area of liability. If someone is injured because property is not well-maintained or if a hazardous area is left unrepaired and unmarked, there may be cause for a lawsuit for negligent responsibility. Liability insurance is the safeguard against these actions.

If a key man dies and a company cannot fulfill contractual obligations, there could be claims for lack of performance or errors and omissions. There is specific business liability insurance that includes protection for these situations. Professional liability insurance should be carried by all business persons, even individual contractors. An umbrella insurance policy acts like gap insurance and can address other types of liability not covered under other policies.

Employers need to have general liability and insurances like workers’ compensation, a business owner’s policy (BOP) and employment practice liability insurance. Employees may become dissatisfied and claim for sexual harassment, incursion on privacy, discrimination and other acts. A good liability policy is well worth the cost in relation to potential damages and expenses that arise in legal actions against business owners. For complete information about liability insurance, contact your local agent.