Business Liability Insurance Definition
What is Business Liability Insurance?
Business Liability Insurance provides businesses with financial protection in the event of legal or financial claims against them.
Such claims may come from customers, employees, businesses, or others who come into contact with the business.
The types of events that will be covered, and the limits of coverage, will depend on what type of Business Liability Insurance has been purchased.
What are some common events covered by Business Liability Insurance?
A customer suffers injury on the property of a business and brings a lawsuit against the business in order to pay for medical bills.
Since the business in question has purchased Business Liability Insurance, legal fees and damages are covered up to certain limits.
One business files a copyright or trademark lawsuit against another business.
The business being sued has Business Liability Insurance, which covers legal fees and damages as determined by the policy.
A disgruntled former employee files a lawsuit against a business for wrongful termination.
Depending on the policy that has been purchased, Business Liability Insurance covers the defense lawyer’s fees, as well as any damages awarded to the plaintiff.
What types of Business Liability Insurance are available?
Business Liability Insurance does not necessarily cover all of the situations mentioned above. Insurance companies often sell different types of Business Liability Insurance to cover different areas of risk.
It’s not unusual for a business to have Product Liability, Professional Liability, and General Liability policies, all of which cover different scenarios.
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