What You Need to Know About Insuring Your Business

12/4/2017 (Permalink)

City of East Lansing

Starting your own business can be an exciting time - but make sure you've got all your bases covered! After you've secured the proper insurances to protect you and your employees, SERVPRO of East Lansing/Haslett can come to your business to set up your ERP!

Learn What’s Protected Under General Liability Insurance Coverage

Business liability insurance coverage is something most business simply must have, so it is essential that you understand what it does and doesn't cover.

Here are some general liability insurance coverage rules of thumb. To be sure about your specific business needs, be sure to consult with a qualified business insurance agent.

What’s typically protected by commercial liability insurance coverage

Business is inherently risky, but business liability coverage safeguards against many known and unknown risks. Commercial liability insurance coverage protects you, your business and your employees from claims involving bodily injury or property damage, up to the limits of your policy. Policies shield you from the expense of out-of-court settlements, litigation and judgments awarded by courts.

Lawsuits, investigations and settlements

If damages are filed against you or you’re sued, general liability insurance covers the insurance company’s investigation and attorney expenses, any judgment or settlement, medical expenses in case of injury and bonds if they must be subsequently posted.

Injury damages

Claims can arise from bodily injury or property damages resulting from accidents on your premises or from your products, your operations or advertising for your business.

Miscellaneous

Liability insurance can also cover things you may not have thought about, such as advertising injury in the event your company’s marketing violates someone’s copyright. Business liability insurance coverage even offers some protection against alcohol-related accidents (as long as your company is not in an alcohol-related business, such as the manufacture or distribution of alcohol).

What’s typically NOT protected by business liability coverage

Here are some situations that would not be protected by general liability insurance coverage. 

Employee injuries

Workers compensation is the insurance you would need to protect your employees when they are hurt on the job.

Professional mistakes

Business liability insurance coverage won’t cover a professional mistake, but professional liability will. It insures against mishaps that may occur as you offer your opinion, solution, service or recommendations in the course of business.

Auto-related coverage

Business liability coverage does not protect you against auto accidents. Purchase a separate auto policy to protect your business.

Punitive damages

Though there can be exceptions, a general business liability policy rarely pays for punitive damages resulting from a lawsuit.

Intentional acts

General business liability insurance does not cover damages or injuries resulting from expected or intentional acts. For example, if an employee assaults a customer, your business liability coverage would not cover the damages if they sue. But if the employee was defending himself or the company from a criminal act, the liability insurance would provide coverage.

Your work

Referred to as the “workmanship” exclusion, and is common in general liability policies. Insurance policies do not respond to what would normally be picked by a company’s warranty for their work.

Source: Nationwide