Business owners face numerous risks, including the risk of litigation. Commercial liability insurance helps mitigate these risks and prevents you from paying out of pocket for legal costs. These policies are a must for all business owners, despite what goods or services you provide the public. 

Frequently Asked Questions About Commercial Liability Insurance

What does liability insurance cover?

Liability coverage protects you against lawsuits filed by third parties. This includes people who were injured on or because of your property, as well as those who’ve experienced property damage because of your business. Liability insurance provides funding for court costs, attorney’s fees, and any damages awarded as a result. It also protects you against accusations of slander or advertising injury. 

What doesn’t it cover?

This insurance does not cover injuries occurring to your staff or property. In this case, you would need workers’ compensation insurance or a commercial vehicle policy if the damage impacted work vehicles. It also doesn’t protect you against accusations of negligence or criminal wrongdoing that led to a third party’s injury or property damage. 

How does it differ from professional liability insurance?

Professionals whose businesses provide services—such as accountants or attorneys—also need liability protection. Professional liability coverage is applicable in this case, as it safeguards you from claims that your professional advice caused a client to lose money or suffer some other form of damage. Commercial and professional liability are not interchangeable, however.

How much coverage should I purchase?

Consider how expensive litigation can get. Even if the claims against your business are without merit, you could still face costly legal fees. If you are found culpable for what occurred, you may also need to pay damages to the injured party, along with other court costs. With soaring costs of litigation and damages, most liability policies start at $1 million coverage in today’s world.

If you’re not sure how much commercial liability insurance your business needs, speak with a knowledgeable insurance agent. In High Point, NC, Zimmerman Insurance Agency has provided reliable service to local clients since 1963. As an independent agency, they can shop around to find you quality coverage at affordable prices. They strive to make the process as stress-free as possible, whether you’re signing up or filing a claim. Learn more about commercial insurance and other services online or call (336) 883-6512 to schedule a consultation.