Learn about your options

Photo of books titled "LAW CASES"You can sue for almost anything these days. As a business, contractor, or freelance professional, the right liability insurance can mean the difference between surviving your mistake or shutting operations down forever. Below, we explain the multiple options for liability insurance and which ones you may benefit from.


General Liability

General liability pays losses arising from real or alleged bodily injury, property damage, or personal injury on your business premises or arising from your operations. General liability is also sometimes known as slip-and-fall insurance.

A broad range of general liability protection exists including:

  • Bodily Injury, including the cost of care, the loss of services, and the restitution for any death that results from injury
  • Property Damage coverage for the physical damage to property of others or the loss of use of that property
  • Products-Completed Operations provides liability protection (damages and legal expenses up to your policy's limit) if an injury ever resulted from something your company made or service your company provided
  • Products Liability is a more specialized product liability insurance that protects your company against lawsuits from product-related injury or accidents
  • Contractual Liability extends to any liability you may assume by entering into a variety of contracts

Other coverage includes: Reasonable Use of Force; Borrowed Equipment; Liquor Liability; Non-Owned Vehicles (such as aircraft and watercraft); Fire, Lightning or Explosion Damage; Water Damage Liability Protection; Legal Defense Costs; Medical Payments; Personal Injury; Advertising Injury; and specialized liability protection for specific business types.

If you have a Business Owner's Policy, general liability is included. This is one of the most affordable ways of protecting yourself.

Who may need this type of insurance

This is a type of insurance that pretty much everyone needs, including contractors, freelance workers, and business owners.

For contractors and freelance professionals, this type of coverage may be legally required. Even if it's not, having general liability is something you're clients will likely want. For your own safety, having general liability is a smart idea. You are held to the same standards as those Fortune 500 Hundred companies, although your budget is likely much smaller! If a client sues you, you are responsible for damages and for any costs associated with going to court. 

For businesses, this is one of the most common and most needed types of insurance. If anyone is hurt on your property or because of your business, this is the type of policy that will cover those losses.

Get a quote for your General Liability Policy.


Professional LiabilityImage explaining professional liability covers financial damages and general liability covers physical damages.

Also known as errors and omission, professional liability ensures you're safe if your services or products cause financial harm. If a client claims they suffered losses due to a mistake you made or because you failed to deliver a product or service, you want to have a professional liability policy. Your general liability policy will not cover the costs of defending yourself and damages the client may be awarded. Professional liability does not cover criminal prosecution. 

Who may need this type of insurance

If you or your business provides advice, it is recommended that you have professional liability insurance. This type of insurance is common for doctors, engineers, architects, consultants, and insurance agents! 

Get a Professional Liability quote.


Directors and Officers Liability

D&O Liability is a specific type of professional liability coverage designed for corporate officers and directors. It covers personal assets of your directors and officers and can cover your company as well. Any errors or omissions causing financial harm due to a director or officer would be covered by this policy with the exception of any illegal acts that were intentional. For example, if a director in your company is sued for misrepresenting your company's assets when negotiating with investors or for neglecting their duties, D&O insurance would cover any legal fees and settlement costs. If one of your directors had a personal interest in another company you did business with and your company and/or that director was sued, you'd want this type of insurance.

Who may need this type of insurance

It is highly recommended that corporations have D&O liability insurance, but any public or private company should consider it. If you have board members or officers, those personnel will likely want you to have D&O liability.

Get a quote for D&O Liability.


Cyber Liability

Covers costs associated with data breaches and cyber attacks by an outside party. For example, if your employees unintentionally help spread a computer virus and it costs others, a cyber liability policy would cover these costs. Without cyber liability, you are responsible. Even if you have the most advanced software protecting your company, human error can still expose you to cyber threats: an employee uses their middle name as their password, you misplace your phone while at a coffee shop, etc. 

Who may need this type of insurance

Anyone worried about cyber attacks. If you or your company handles sensitive or protected data, then you should seriously consider this form of liability insurance. Even with protections in place like antivirus software, you should not underestimate the intelligence of cyber criminals. This type of coverage may be right for a wide range of businesses, consultants, contractors, and so forth. 

Get a quote for Cyber Liability.


Umbrella Liability

This type of insurance would kick in if you exceed your limits for other liability policies. It can also provide broader coverage, extending your protection to risks excluded by other policies.

Who may need this type of insurance

If you're concerned your limits from your other policies are too low or don't cover the exact risks you face, an umbrella policy is worth considering.

Get a quote for a Umbrella Liability Policy.


How do I decide what to buy?

A good insurance broker will take the time to sit down with you and answer all of your questions. You should always ask your insurance agent what is not covered. You should also understand your limits and then purchase umbrella liability if those limits seem low.

Whether you're managing a company with one hundred employees or you're an independent contractor working on your own, you should review your assets and determine what risks you can afford to take. If you are sued, could you reasonably cover those costs? Could you remain in business and pay the bills for your operations? 

Never be afraid to ask your agent what discounts exist or how you can save money on your insurance costs. You may be able to bundle coverage and save and you won't know unless you ask! 


What's the bottom line?

No one expects to get sued, but someone always does. People make mistakes, freak accidents happen, and businesses are often forced to close because they simply can't afford to continue. Having the right liability policy means your costs will be covered. Rather than viewing liability insurance as another expense, consider the peace of mind you'll have knowing your business is protected. Liability insurance is an important part of ensuring your business will be successful for years to come.

Posted 9:50 AM

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