Insurance coverage is essential for professionals running any type of business. This protection is necessary to avoid costly losses from property damage and theft. But it’s also vital for litigation protection. With liability insurance, you have someone fighting for you if a client sues you or your company.
Business Liability Insurance Overview
Liability insurance for businesses covers a wide range of potential issues. What it protects and to what extent depends on the type and amount of coverage you purchase. These are some common categories: General liability addresses property damage and bodily injury claims against your business.
Professional liability or errors and omissions coverage is necessary for claims of malpractice and other harm that another party says you caused because of your actions or lack of action.
Product liability coverage helps defend against claims of product defects that cause damage or injury.
Contractor liability insurance helps safeguard against losses caused by accidents, injuries, and property damage risks that are common in the construction industry.
Commercial Umbrella insurance extends the coverage of your liability policy.
Cyber or data breach coverage deals with the problems and losses you can face when company data that includes the personally identifiable information of others is stolen or compromised.
Commercial Auto liability helps protect your business when an employee injures someone or damages property in a vehicle accident while driving for your company.
You can typically purchase stand-alone general liability insurance and add other types of liability coverage as needed.
Fighting a Liability Claim or Lawsuit
When a consumer suffers harm or loss while using a business product or service, potential remedies include filing a claim or lawsuit against the company they hold responsible. This can also happen when a client suffers a severe injury during a session with their personal trainer.
Another example is when a patient believes their doctor committed malpractice. Liability insurance pays the “injured party” who files a successful claim, instead of the policyholder. That’s why third-party insurance is another common name for this coverage.
But as the insured party, you also receive valuable legal representation. Your insurer has a duty to defend when a consumer files a claim against you or your business for something that’s covered by your liability insurance.
An attorney analyzes the case and develops a legal strategy to fight the claim on your behalf. Your policy provides this insurance defense.
Settling a Liability Claim
If the injured party ultimately wins the case, your insurer pays the claim. Settlement is also possible if the attorney and insurance adjuster determine that paying the claim is the best option considering all the facts and evidence.
Skilled legal representation from an experienced insurance attorney in Riverside and help to navigate a liability claim against your California business can be valuable benefits of having liability insurance.