Commercial Liability Insurance
A lawsuit could mean a catastrophic loss to your business. Therefore, it is important that you carry enough liability insurance to protect your business from financial loss because of injuries, deaths, or property damage caused by your products, business operations, or employees. A liability policy generally will provide for your legal defence and will pay on your behalf if you are liable, up to the limits of your policy. Some of the major liability categories are explained below.
Commercial General Liability (CGL)
This policy provides many liability coverages under one contract. For example, Premises and Operations coverage pays bodily injury and property damage claims to members of the public as a result of an accident on your premises or arising out of your operations. Products and Completed Operations covers liability arising from the handling, use of, existence of any condition in, or warranty of any goods or products manufactured, sold, handled or distributed by your business after the product is given to others and is away from the business premises. It also provides coverage for claims occurring away from your premises and arising out of operations which have been completed or abandoned.
Directors' and Officers' Liability
This Insurance protects corporate officers and directors against claims brought by shareholders, employees, consumers, clients, or businesses because of wrongful acts committed in the course of their executive duties. This coverage may be needed by your directors and officers, whether you are a for-profit or a non-profit organization.
Employment Practices Liability
Employment Practices Liability Insurance is a relatively new form of liability insurance. It provides protection for an employer against claims made by employees, former employees, or potential employees. It covers discrimination (age, sex, race, disability, etc.), wrongful termination of employment, sexual harassment, and other employment-related allegations.
Umbrella Liability
This type of policy provides protection over and above the limits of basic liability policies such as commercial general liability policies and commercial automobile policies. To decide whether you need an umbrella policy, think of the most extreme situation that could happen in your business and determine whether your current liability policies would cover this risk. In some cases, umbrella policies provide broader coverage as well as higher limits.
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