Liability insurance is a type of commercial insurance or business insurance. Also called business liability insurance, this type of coverage protects businesses and business owners from legal claims related to the operation of their business.

Liability insurance coverage may vary according to the business’ needs, as well as the specific provider used. General liability usually covers claims involving:

  • On-premise injuries such as slip and fall injuries
  • Copyright, trademark, and various other intellectual property claims
  • Marketing-related claims such as loss of business reputation, slander, and false advertising claims
  • Certain class-action type claims, such as those involving toxic torts

What Are Some of the Benefits of Liability Insurance?

One of the main benefits of liability insurance is that the business can sometimes save time and money when it comes to obtaining a legal defense in case they’re sued. Legal cases can often be time consuming and can cost the company a significant amount of resources. However, these can often be absorbed by the insurance provider in many cases.

Another benefit of liability insurance is that insurance companies often would prefer to reach a settlement if the business is sued. This can help preserve the business’ contacts and network base; the business might be more likely to continue doing business with someone if they reach a settlement rather than seek to extract damages from them.

What Are Some Disadvantages of Business Liability Insurance?

A drawback of liability insurance is that the business may need to pick up some of the legal costs if they start exceeding a certain amount. As with any type of insurance arrangement, these types of minimums will vary according to the exact insurance plan. For instance, there may be specific terms of coverage when it comes to small business liability insurance. This may be vastly different from the type of coverage offered for home business insurance.

Lastly, it can also happen that the business might run into some legal problems with the insurance provider. For instance, if there is a dispute over the insurance contract terms, it can affect the way a business approaches legal options if they are subject to a lawsuit. For instance, there may be a dispute as to who will be responsible for covering certain legal fees or damage amounts. These types of dispute may require separate legal proceedings to resolve.

Do I Need a Lawyer for Help with Liability Insurance Claims?

Liability insurance is a complex topic, and you may require legal assistance when dealing with these types of claims. You may need to hire a business lawyer in your area if you need any type of guidance, advice, or representation in connection with liability insurance. Your attorney can help when it comes to negotiating coverage options, facing legal claims, or dealing with insurance personnel. Also, if you need to appear in any legal proceedings, your lawyer can help you during the court meetings.