Many businesses, especially small ones, ignore the need for business liability insurance. Although they take every measure to protect their business against risks by taking out insurance on physical assets such as buildings, stock and property, they do not consider protecting their business against various possible liabilities that they may face.
Protection against all possible types of liability is of great importance to a company, given the seriousness of the damage they cause to the reputation, finances and survival of the company.
Types of business liability insurance
Professional Liability Insurance In San Jose California helps small business owners protect their businesses by protecting against liabilities such as public liability, employer liability, professional liability, and product liability.
Depending on the type of business you are in, you need to purchase the appropriate insurance. The following are some of the main types of insurance suitable for small businesses.
• General Liability – This insurance is useful for small businesses to protect owners from liability claims due to property damage or physical injury caused to the general public, employees or customers as a result of operational negligence in the course of business.
This insurance protects you by indemnifying you for the medical expenses of bodily injuries caused to a person. It also protects you against third-party property damage claims.
• Professional Liability – If you are a software consultant, plumber, CPA, or any other professional offering your service for a fee, the likelihood of facing professional liability is high.
Professional liability protects professionals from liability risks resulting from data loss, malpractice claims, for example, data copying, breach of trust, accidental data loss, or your employee's unintentional error. The cost of litigation is too high in these cases and this insurance takes care of those expenses.