Small Business Liability Insurance

Small business liability insurance protects your enterprise from legal actions against it due to different circumstances. Always grouped as one type of small business insurance coverage, in fact business liability insurance can be sub divided into different types of liability coverage that all are different from one another.

This means that if your business has liability insurance there are the following four types of liability protection delivered with it:

 

1. Public liability – this coverage protects your enterprise from legal claims filed by other companies or persons due to injuries or harm caused by the company to persons or property by its activities or negligence. Of course, web design companies or SEO agencies are unlikely to require such coverage as there's simply no way a graphic designer can injure another person by his work, but in case your business has workshops or production facilities with third parties able to access them you should definitely carry public liability coverage because the risks of delivering public damage is rather high.

 

2. Employers liability – as you may guess from the name, this type of liability coverage protects your enterprise from any claims filed by own employees as a result of sickness, injuries or other harm delivered during the working time. Of course, you may resolve any in-house situation without having to go to court and needing this type of coverage, but sometimes employees will not agree with you and that's exactly when employers liability kicks in.

 

3. Professional indemnity insurance – this type of business insurance coverage protects your enterprise within the course of your professional activities. However, it depends on the type of activities your business is running. For instance, accounting companies are legally required to take out this type of insurance coverage because they wield financial and legal responsibility in case their activities are erroneous, while IT consulting companies are strongly insisted by clients to include such coverage into their business insurance policies.

 

4. Directors insurance – of course, having corporate business organization guarantees its owners and directors limited or no legal responsibility for the actions of the enterprise. However, in certain cases like professional negligence, corporate heads can be sued and required to carry individual responsibility for their actions. In such situations directors insurance kicks in, providing financial protection for the company and paying for legal costs the key employee has to face. Of course, not every employee is eligible for such protection as only corporate heads can benefit from such coverage because their inability to work can reflect in the entire business's activity.