Siskiyou Insurance Services, Inc.

Who Needs Business Liability Insurance?

Business liability insurance protects your business for property damages or personal injury in the event of a lawsuit. All businesses need some form of liability insurance. According to Bizstats.com, over 78% of all U.S. businesses are set up as sole proprietors or partnerships. Business Liability Insurance, also known as General Liability Insurance protects both your business and personal life from catastrophic ruin due to an unforeseen business occurrence. Owning business liability insurance protects both your business and personal life from financial ruin.

There is a common misconception that if you are structured as a limited liability company (LLC) or an incorporated company that you are protected from personal liability and liability insurance. This is not necessarily true. You can be personally liable if:

• The business has a loan guaranteed by you.
• If you have acted illegally or in an irresponsible manner.
• If you have personally injured someone.
• If you do not operate your business as a separate entity

Business Liability Insurance will cover the damages from a lawsuit as well as cover legal costs. Depending on your business needs, liability insurance can purchased in many different forms.

Types of Business Liability Insurance

Product Liability Insurance: If a person is injured as a result of using a product you manufacture or sell, you would be protected by this type of insurance in the event of a lawsuit. Different levels of coverage are available depending on your type of business. Siskiyou Insurance has experience with answering questions about product liability that you may have.

General Liability Insurance: This type of liability insurance is the primary coverage that protects your business from advertising claims, property damage and injury claims. It is also known as Commercial General Liability (CGL) and may be the only type of insurance you need depending on your particular business.

Professional Liability Insurance: Businesses that provide service may need to acquire this type of insurance to cover errors and omissions regarding the services you provide. This is typical of doctors and lawyers but also applies to other industries. Ask your Siskiyou Insurance Agent whether your type of business needs this coverage. For many businesses it does not cost much to add this on to your General Business Liability Policy.