Liability insurance

Business liability insurance is a generic term that describes various types of insurance that cover third-party lawsuits. If a person or company believes you caused an injury or property damage and files a lawsuit to recover losses, your liability insurance can pay for your legal costs up to your policy limits.

Liability insurance protects your assets by paying for legal expenses, such as:

• Attorney’s fees
• Settlements (the amount you agree to pay in return for the plaintiff dropping the lawsuit)
• Judgments (what a judge or jury orders you to pay after you lose your case)
• Administrative court fees
• Expert witness fees
• Direct payments to the plaintiff for medical care and property repair

Liability insurance is a component of many forms of small business insurance, including:

• General liability 
• Errors and omissions 
• Cyber liability
• Workers’ compensation
• Employment practices
• Commercial auto

Liability insurance is widely available in the insurance marketplace as a key component of many types of business insurance coverage. It is easy to qualify for as long as your business doesn’t: 

• Engage in high-risk activities
• Have a history of frequently filing liability insurance claims

Assuming your firm can pass an insurance company’s underwriting requirements, you will likely be eligible for the liability insurance you’ll need to keep your risks at bay.

If you own a small business, then it’s a given you need liability insurance. That’s because a large lawsuit can result in judgments or settlements that may put you out of business. 

Insureon helps small business owners compare commercial insurance quotes from A-rated U.S. carriers with one easy online application. Start an application today to protect your business against claims from third parties.