In business, many different risks expose you to the possibility of being sued. The more successful your business is, the greater the risk of being sued; however, even small businesses should not underestimate the possibility and financial impacts of a lawsuit. One lawsuit could end years of effort spent building your business.

General liability

Liability insurance protects you from claims of injury or damage to third parties. A general business liability policy provides coverage for more common risks of bodily injury to customers or visitors to your premise or property damage. It is extremely important to have proper liability insurance protection for your company, your employees and you in the event that you are sued.
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Specialized liability insurance options
Bodily injury or physical damage is what most people think of when it comes to liability; however, there are a variety of other liability exposures that can put your company at financial risk. General liability insurance does not protect against professional negligence that can lead to an expensive legal defense.

Depending on your type of business there are a variety of specialized protection options to consider. Listed below are some common options. If you want to discuss specific liability insurance needs for your business, email, call or visit us. We will help you develop a custom protection plan that fits your business.

Employment practices liability

Challenging economic times often bring an increase in lawsuits for a variety of employment-related claims and can involve current, former, or potential employees. Employment practices insurance provides your company, directors, officers and employees protection in the event of claims related to sexual harassment, discrimination, unfair hiring practices, wrongful termination, breach of contract, and a variety of others. It can happen at any company. It’s estimated that 3 out of 5 businesses will be sued at some point.

Errors & omissions and professional liability

Errors and omissions insurance (E & O, professional liability or malpractice) protects you against an error that causes injury or damage to a third party. It provides you with financial protection if you are sued because someone accuses you of failing to take appropriate action or negligence causing them financial damage. It covers damages, jury awards, and legal defense costs. Even if you are sued and not found responsible, the legal fees alone can be financially disastrous without protection. It’s important to note that it must be negligence not an intentional act. E&O protection is important for a wide variety of professionals including but not limited to counselors, doctors, dentists, accountants, attorneys, architects, consultants, chiropractors, engineers, psychologists, and real estate agents.

Directors & officers liability

If you are a director, officer or manager of a business or a non-profit organization, your participation in planning, directing, and reviewing organizational activities puts you at risk of being named in lawsuits related to alleged breaches of duty, errors in judgment, and other situations that caused a third party to suffer a financial loss. Unless a business or organization has Directors & Officers coverage, individuals performing these roles have liability exposures that are unprotected and have serious financial risks. Be sure that all organizations in which you play a leadership role have proper insurance coverage in place to protect you.

Cyber liability

As more and more businesses rely on the internet for e-commerce, an increasing area of risk involves providing services or distributing information online. This type of liability policy can protect first- and third-party liability in allegations of online errors and omissions; virus transmission; copyright, trademark, and intellectual property infringement; libel; slander, or other various internet-related issues.

Commercial umbrella

Even if you’ve purchased solid liability protection with good limits on your other policies, there may still be a need to have a higher level of liability protection. A Commercial Umbrella Policy provides an extra layer of protection over and above other liability policies you have to better financially protect you in the event of lawsuits, settlements, and jury awards. It’s a cost-effective way of providing $1 million or more of coverage. Most insurance companies will require a minimum level of protection on other policies you have to qualify for an umbrella policy.