DATE: December 31, 2016
Liability insurance is also known as commercial insurance and is a type of insurance that protects you and your business’ financial interests from claims. Normally, these claims will come in the form of lawsuits. If you are a small business owner, having liability insurance for a small business can come in handy, where, in the event that you get sued for claims, as long as the lawsuit claim is within the confines or coverage of your liability insurance policy, then your insurance provider will have three options to do for you and they are to: 1) defend, 2) indemnify, or 3) settle reasonable claims.
Public Liability – any business has the capacity to affect third parties who may get physically injured or have private or personal property get damaged as a result of one’s business operation. Those who require public liability insurance most are those that occupy areas or premises where large numbers of third parties frequent at leisure. This includes shopping malls, sports venues, hotels, resorts, theaters, markets, night clubs, beer pubs, and many more similar areas where lots of third party people congregate.
Product Liability – although not compulsory in all countries, different legislative bodies have directed this as a means of consumer protection. In the United Kingdom, those manufacturing or supplying goods are supposed to carry some form of product liability insurance that is often in combination with their liability policy.
Employer Liability – new policies have been developed to provide coverage on any liability that an employer can be accused of should an employee get injured as a result of an employment. Most insurance companies are prohibited from including or providing conditions within their policies that seek to impose conditions precedent to liability. On countries where this form of liability insurance is not mandated as compulsory, a lot of small businesses and organizations are driven into bankruptcy when the claims filed against them are not covered by insurance.
Third-party Liability (TPL) – this is an insurance policy that is purchased to pay damages caused to another party by the insured, whether at fault or not. TPL is purchased by the policyholder as a means of protection against claims made by another party, particularly if the damages or cost of damages being brought in sought of compensation is unreasonable or is beyond that of the damage made by the insured.
Liability insurance is without doubt an important investment for any small business. As long as you know the type of liability insurance coverage that you need for your business insurance, you will be able to properly protect your business against unnecessary financial cost that may lead your business into financial ruin. It is important to keep in mind that insurance is a means of protection and assistance on scenarios stated within their means of coverage. By knowing what type of insurance will benefit you and your business, you will need to only spend on what is needed and necessary.
CATEGORY: Canadian Businesses
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