General liability insurance is a critical investment for any business owner, shielding you from lawsuits that could force your company to close. Unfortunately, many entrepreneurs aren’t sure why they need this coverage or how it can protect their investments. If you don’t have it, below are a few of the most frequently asked questions about the protection these policies provide.

Answers to Common Questions About Liability Insurance

What does liability insurance cover?

If an injury occurs at your business or an employee damages a customer’s property, your liability insurance will reimburse them for their losses. It also covers customers hurt by a defective product and many other common situations that you would put your business at fault.

Does it shield me from lawsuits related to employee mistakes?

Professionals in some industries may need enhanced liability coverage to protect themselves from lawsuits fully. If you work with computers, accounting, or other fields with considerable responsibility, your agent may recommend carrying errors and omissions insurance, which pays for losses caused by errors and oversights.

What if the lawsuit is false?

Unfortunately, in today’s society, deceptive liability suits are common. If your insurer decides that the plaintiff’s claim is without merit, they’ll cover the cost of your legal defense, and may even provide an attorney for you.

How much liability coverage do I need?

Liability insurance will only pay claims up to the limits of your policy, so ensure you have enough coverage. Most agents recommend carrying a plan that equals the combined value of all your business and personal assets.

As a representative of one of the nation’s leading carriers, Farmers Insurance® - Andrew Chao helps St. Louis, MO, business owners protect themselves from the unexpected. Drawing on his extensive knowledge and industry experience, he’ll evaluate your situation before finding a policy tailored to your needs. Follow his Facebook for more tips and advice, and call (314) 300-7690 or visit him online to request your free liability insurance quote.