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Protect Your Small Business with Professional Liability Insurance
After you've invested your time, energy, and resources into developing a successful business, you'll want to make sure your assets are protected.
For this, you'll want professional liability insurance, which plays a critical role in protecting your small business in the event of damages to your property or occasions when you may be involved in a lawsuit. Professional liability insurance also provides additional categories of liability coverage.
Types of Professional Liability Insurance
- Property Insurance : Property insurance will protect your business against damage to fixtures, equipment, machinery, furniture and computers. It will also provide reimbursement for damaged supplies or inventory.
- Commercial Property Insurance : This type of professional liability business insurance offers basic, broad, or special form coverage. Basic commercial property insurance coverage is the cheapest to purchase, but special form coverage provides more protection. Insurance that provides reimbursement for guaranteed replacement costs is preferable to coverage that only reimburses an item's depreciated value.
- Liability Insurance : The purpose of commercial liability insurance is to protect against damages resulting from a lawsuit. For example, if someone falls on your property, liability insurance will provide reimbursement for this person's medical expenses. Your policy will typically cover expenses for attorney fees, investigative services and payments to victims of bodily injury or property damage. However, liability insurance does not provide protection against standard business debts.
- Auto Insurance : This type of professional liability business insurance is necessary if your business involves the operation of cars, trucks, or other motor vehicles.
- Product Liability Insurance : If you manufacture a product that is potentially dangerous, such as a lawnmower or a paintball gun, you may also need to purchase product liability insurance in case you are sued by a customer claiming to have been injured by your product.
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