What Is Liability Insurance?

Are you in business for yourself or do you work as an independent contractor? Imagine this for a moment....

You own a business and a young child falls and breaks his leg on your property. This is an incident that will have you asking, what is liability insurance? If you have it you will be protected from the high cost of lawyers to defend you and the medical bills you will have to pay for this child if you lose your case in court.

This is the reality of the world we live in. People sue because their coffee is too hot or because they are too stupid to look where they are going. It must be the companies fault because I slipped and fell over my own feet on their property. Nobody is willing to take blame for their own actions and this is why they want to call one of the bottom feeding lawyers that deal with personal injury cases and sue.

If they sue your business there is a good chance they will put you out of business or at least cause some damage to your growth. They will make you have to pay for lawyers and if you lose you will have to pay for the settlement amount or the court ordered amount that is determined.

This can cost you hundreds of thousands of dollars or even millions of dollars and can put you right out of business. You can, however protect yourself with liability insurance. This insurance will protect you from these lawsuits and can protect your employees from accidents and lawsuits as well.

You can choose the level of coverage you want and your liability insurance will even cover some or all of your attorney fees. This insurance can keep you from going out of business over something as stupid as being sued because you serve coffee that is too hot.

So, to answer what is liability insurance, you can only come up with one thing. It is your life, your business, your integrity, and your all time protection. It is what you need to stay in business and stay protected. It is better to have liability insurance and never use it, than to not have it and get sued and ran right out of your business.

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Author: Learn more about What Is Liability Insurance and why you need it here: What Is Liability Insurance?

Commercial Liability Insurance - What You Should Know About Commercial Liability Insurance

Are you considering going into business for yourself? If so, you need to consider commercial liability insurance to protect yourself from any visible or possible liability that might occur. This will save you a lot of money in the future, especially since we live in a sue happy society.

Commercial liability insurance will pay for part or all of the damages that are caused due to liabilities of the company. These could have been damages due to business dealings or not, but either way you will be covered. It could be something as simple as a child skateboarding in front of your office and they break their arm. If the family sues you will be covered and will not have to worry about paying thousand of dollars out of your pocket.

Most of the time your coverage will cover legal fees if you decide to fight the case as well or during the settlement period. It is necessary for your businesses survival to have adequate commercial liability insurance to protect yourself from expenses that you are not expecting.

One has many options of applying for commercial liability insurance. However it is the insurance company that, by using their underwriting standards, determines if the business is eligible for insurance and for how much. The insurance companies have classifications on businesses, and any new commercial liability insurance has to fall in one of those classifications. This means that even a company with a totally clean record might still have to pay a high premium for commercial liability insurance.

You will have quite a few different options when picking your policy. You can choose the type and the amount of coverage you want depending on the risks you think you might incur. There are certain classifications on businesses and underwriting will determine whether your business is eligible for liability insurance and how much you need to protect yourself and your business.

Imagine this for a moment.....

There was a bar in Indianapolis that over served a patron and the patron tried to drive home. This person ended up getting into an accident and injuring a young child. This child is bound to a wheelchair for life and has to be fed by another for its' entire life. The family rightfully so, sued the bar, the bartender, and the man who hit them. They won over $5 million dollar all together and the bar shut down, the bartender has half their wages garnished every week, and the man that hit them ended up in jail for over 10 years.

If this bar would have had commercial liability insurance to protect themselves from this horrible incident they could have stayed open, and just experienced a hike in their insurance rates. The bartender could have carried a type of liability insurance for themselves to protect them from this incident as well.

The moral of this story is you never know when something is going to happen and you are going to wish you had commercial liability insurance. It is better to start with it and not need it, than to not get insurance and end up wishing you had it.

Photo: http://www.lkinsurance.on.ca

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Author: Learn more about Commercial Liability Insurance and why you need it here: Commercial Liability Insurance