What types of insurance policies should a business consider to protect itself from liability claims?
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- General Liability Insurance: This type of policy provides coverage for damages caused by bodily injury or property damage that arises out of business operations, products or completed work. It can also provide coverage for advertising injury, such as libel or slander.
- Professional Liability Insurance: This type of policy is often referred to as Errors and Omissions Insurance and provides coverage for claims that arise out of the professional services provided by the business. This can include claims of negligence, errors, or omissions in the services provided.
- Product Liability Insurance: This type of policy is designed to protect businesses that manufacture, distribute or sell products from claims arising from a defective product that causes harm to a person or property.
- Cyber Liability Insurance: This type of policy provides coverage for losses or damages caused by a cyber-attack or data breach. It can provide coverage for costs associated with responding to the breach, including notification costs, credit monitoring, and defense costs if the business face lawsuits.
- Employment Practices Liability Insurance: This type of policy provides coverage for claims arising from wrongful termination, discrimination, harassment, or retaliation.
While these policies can provide significant protections against liability claims, it is important for a business to carefully review the terms and exclusions of each policy. Some policies may have limitations or exclusions that may not provide coverage for certain types of claims or activities. Additionally, a business should consider purchasing excess or umbrella liability policies to further increase their protection in the event that a claim exceeds the limits of their primary policies.
In summary, businesses should consider purchasing different types of liability insurance policies to protect themselves from liability claims. It is important to review the terms and exclusions of each policy and consult with an experienced insurance broker or attorney to ensure that the business has adequate coverage.
