Whether you are a contractor or small business owner, you may need some form of business liability insurance to safeguard your livelihood adequately. For example, even a small accident (e.g., a customer slipping on the floor) in your business premises may result in a lawsuit that can leave you vulnerable and financially exposed.

To protect yourself against such an eventuality, you need to have liability coverage that corresponds to your level of exposure. Also, if you are in the contracting business, some clients or employers may ask you to have some sort of general liability cover before you can start working for them.

Basics of Commercial Liability Insurance

Commercial liability insurance (aka “business liability insurance” and “commercial general liability insurance”) protects California businesses from claims of injury or damage that occurred at the business premises during regular business operations.

It may also include protection from claims of bodily injury and property damage resulting from the use of a finished product or service administered in a different location.

As a business owner, you can purchase excess liability coverage to cover claims that exceed the limit of your commercial liability insurance policy. However, note that some commercial general liability policies may have exclusions, so read the fine print to know exactly what is covered.

Additional Protection

Although commercial general liability insurance is not mandatory in California for businesses, getting sufficient coverage for your business will ensure protection from certain business risks. A commercial general liability insurance policy typically protects you from bodily injury, personal injury, advertising injury, and legal defense and judgments.

Aside from commercial general liability policies, consider purchasing policies for coverage against other business risks, such as:

• Employment practices liability insurance: Covers employment-related liabilities, such as legal fees and damages from employee lawsuits (e.g., wrongful termination, sexual harassment)
• Professional liability insurance: Insurance cover for errors and omissions in financial reports or damage to third-party data and similar instances
• Directors’ and officers’ insurance: Covers damages resulting from the negligent actions or omissions of directors and officers

Before deciding on getting additional coverage, always study your business and assess your risk exposure. Then use that as a basis for choosing which coverages apply.

To help you sift through the many options available beyond commercial liability insurance, give us a call at 818-248-4500 or get in touch online.

Get a Free Commercial Liability Insurance Quote