The importance of liability insurance is to protect your company from any claims that might come from outside parties. You should always prepare for the things you cannot see coming. It is better to be prepared than go broke. The insurance company will take responsibility for any damages.
There are lots of different types of liability insurance, but it is very important to know the types that you need to make sure you are covered.
Why Is It Important?
Prevents Financial Ruin: It is important because it protects you against financial ruin and your company closing down. There are Public liability policies that will help protect you from being liable if any public property gets messed up.
Protects Your Company: Product Liability protects the company from anything that injures or affects another party due to a product. If a company sells a product and the customer gets hurt or ill from the product then they will not be held liable. If you think of liability when you are driving a car and how it helps take care of the other car involved then you can see how it works for businesses as well.
Gives You Peace of Mind: Liability insurance protects you against law suits, death, injuries and disruptions that occur through your company. Liability insurance is important to give you peace of mind.
Examples of Liability Insurance
There are many different types of liability and they are all important.
Workman’s Comp: If you have employees then you will have to have employer liability which is also known as workman’s comp. It is required to run a business that you have employer liability. This protects the employee to some extent but it is mostly to protect the company from being sued if someone gets hurt.
Medical Liability Insurance: Medical practitioners also have very important liability insurance that protects them if they must do a difficult medical procedure. It protects the doctor or other medical workers from getting sued if something goes wrong during the procedure. We are a sue-happy world and for some reason people are a lot more likely to sue than they used to be.
Professional Liability Insurance: Professional liability insurance is important because if someone is considered a professional then they are held as much more liable then those without the title. They need professional insurance to cover them for the things that the general liability insurance. You can see why having liability insurance is so important for your business and your employees.