You work hard for the success of your projects and you want your company to be around for a long time. You insure your facilities and your equipment in case of damage. But are you aware of the importance of commercial liability insurance? In case of damage caused to others, your company will be protected in the event of a lawsuit.
Liability: a definition
Liability is a principle principle according to which a person has the obligation to repair any damage caused to another person. This damage may be the result of an involuntary action or omission. It may also be caused by people, property or animals for which the person is responsible.
An accident happens so quickly. You damage someone’s property or vehicle during a delivery, one of your products accidentally injures someone, etc. Despite all your good will, you are not immune to this type of situation.
However, these types of damages can become costly and even threaten the existence of your company. Commercial liability insurance is therefore essential. Let’s find out more about it.
Important: the purpose of liability insurance is to compensate for damages caused : it is not intended to be punitive.
Overview of liability insurance
Basic liability insurance will protect your business should you be held liable for injuries to others. These damages must be related to your professional or commercial activities.
This insurance will cover bodily injury, property or reputational damage (written or oral defamation). It may also cover medical expenses, if applicable.
In the event of a lawsuit for this type of claim, your insurance would cover your defense costs, and compensation costs which are paid to the accident victim.
Commercial liability insurance: low-cost protection
As we all know, a lawsuit can result in huge expenses. Liability insurance can protect you at an affordable price. Not to mention the peace of mind of knowing you are adequately insured.
Different riders exist to adapt your coverage to your needs and reality. By describing your activities in detail, you’ll find the formula that will that’s right for you. Contact one of our brokers today to discuss your situation.
