Every businessman will want to protect the assets of business from judgment or claim against a business. In order to properly protect these assets, business liability insurance (or also referred as commercial insurance, asset protection insurance or shareholder insurance) has been made and offered as one solution. It does its job in protecting a business and its assets from terrible events and even the devastating effects from the negligence lawsuits. There are basically three categories for business insurance and they are:
General Liability – This insurance’s primary coverage is vehicles of a business. It can cover, libel, slander, personal or property damages as well as miscellaneous or other injuries suffered by business owners or the employees caused by accident or through the negligence.
Professional liability – This insurance will provide coverage for employers and business owners who provide particular services to their clients or customers. Architects, doctors, consultants, lawyers, salon owners and general contractors are examples of professionals who need this insurance. The insurance will be able to give coverage towards omissions or errors made by professionals while working.
Product Liability – This is an insurance that will protect a business against claims and law suits based on a wrong or injury caused by a product sold or produced by a business. This insurance has wide range of cost and coverage depending on particular risk profile of one business. Finding the affordable insurance will be proven as difficult is a business is a specialty or niche business. Finding and comparing references will be difficult. Therefore, it Is recommended to work with insurance company specialized in commercial insurance.
In general, the business liability insurance might provide coverage to the following varieties of coverage:
- Attorney and legal fees
- Court fees
- Damages, judgments and awards
- Loss of use of the damages properties
- Lost productivity
- Lost profits
- Transportation costs
There are many more small things those cam be used to greatly reduce the liability expense of a business. For all of the purposes of business liability insurance, businessmen are suggested to get this insurance for the good of their companies. The main question now is how much business liability insurance will cost a company? The average cost of business liability insurance is varied depending on the scale of business. For small businesses with only 10 or fewer employees, they need to pay insurance ranging from $400 to $600.
The cost of business liability insurance certainly depends on a variety of things including about the type of activities done in a business and the scale of a business itself. In order to get the more reasonable insurance premiums, hiring professional consultants will be a great idea. Business owners may also consider having their clients, partners and vendors sign to an agreement that will reduce or limit the risk exposure and suggests the clients, partners and vendors to settle possible conflicts through the biding arbitration. Take the average cost of business liability insurance as reference in searching for the most ideal insurance.