If you’ve ever bought liability insurance for your business (or even researched what kind of insurance your business needs), you’ve likely been surprised at the variety of coverages available. You can buy liability insurance to protect your property, your employees’ health, your customers’ wellbeing, your income, your data security – and more.
And as technology and laws evolve, we find ourselves exposed to more risks practically by the day – and decision makers are taking notice, suggesting more and more types of insurance to protect ourselves.
Do I Need Liability Insurance for…
Here’s a look at some of the latest types of liability insurance that have been proposed around the country that, as a small-business owner, you can be grateful you don’t have to worry about.
- Firearm liability insurance: With more and more deadly shootings in the news and concealed carry laws becoming the norm around the country, lawmakers in several states (including Maryland, Pennsylvania, Connecticut, California, and New York) have proposed laws that would require firearm owners to carry liability insurance. This insurance would have a limited scope, providing funding for a gun owner’s legal defense in the event of an accidental, gun-related injury (but not a criminal act).
- Pollution liability insurance: In China, where pollution is a serious health and environmental concern, lawmakers have proposed a law that would require businesses to carry pollution insurance. This coverage would ensure that, in the event of a pollution incident with serious health or environmental consequences, the responsible company would have access to adequate funds to compensate the victims.
- Space liability insurance: New Mexico’s legislature recently sent a law to the state’s governor that would limit liability for commercial space travel companies. Specifically, the law would prevent space tourists from suing Virgin Galactic (and presumably other space travel companies that eventually enter the market) or any companies responsible for manufacturing parts of the space vehicles in the event of an injury or accident during a space trip. The law is seen as a way to ensure that companies in the space tourism industry feel confident that they won’t face debilitating lawsuits in the event of an equipment failure.
Liability Insurance Needs for Small Businesses
So what do you need liability insurance for? The exact answer will depend on your industry and your specific business practices, but most small businesses can expect to buy General Liability Insurance, Property Insurance, and maybe Cyber Liability Insurance. If you have employees, Workers’ Compensation Insurance might be wise, but beyond that your needs will depend almost entirely on the kind of work you do.