Are You Covered? Liability Insurance Options for Business Owners

You’ve spent years working to make your business a reality. Finally, after all your hard work, you’re making money. Then—disaster! A customer slips and falls in your office and sues you, one of your employees is injured on the job, or a computer with sensitive client information is stolen!

Most if not all businesses need the protection of commercial liability insurance. Along with your own best practices, partnering with a commercial insurance company can give you peace of mind that your business can survive a lawsuit, data breach, or other covered loss. Commercial insurance can protect many different businesses—from a small retailer to a real estate investor, a landscaping company, to a CPA.  

What is liability insurance?

Commercial liability insurance covers what you as the policyholder are legally obligated to pay because of bodily injury or property damage caused to another person. For businesses, this coverage is essential, protecting assets from lawsuits that could be financially devastating, or even put you out of business entirely.

What type of liability coverage do I need?

The type or types of liability coverage you need to protect your assets depends on your business. The kind of work you do, your property and equipment, your customers and employees—these factors influence the kind of coverage you’ll need. Here are some of the most important coverages to consider:

Commercial general liability. Most businesses need general liability. This coverage protects you from claims that include customer injury or property damage, mistakes that adversely affect a client financially, or advertising that hurts a competitor. General liability insurance can be bought by itself, or as part of a business owner’s policy, or BOP, which combines business liability, property, and income coverage into one policy.

Workers compensation. This coverage provides financial compensation to employees who have been injured on the job and can’t work. Employer’s liability, which is often included in a workers comp policy, helps employers pay for legal costs when an employee is injured on the job.

Professional liability insurance, or errors and omissions insurance (E&O). Like malpractice insurance for doctors, this coverage protects you if a customer sues you because of a professional mistake or oversight.

Umbrella or excess liability. Additional coverage which takes over once policy limits have been reached on your general liability, employer’s liability, or commercial auto policy.

Employment practices liability. EPL covers damages and defense costs if an employee claims harassment, wrongful termination, discrimination, or makes another employment-related claim. 

Cyber liability. Helps your business deal with the financial repercussions of a data breach or cyberattack.

How can Lakewood Financial Services help me with my insurance needs?

You’re not wrong to think there’s insurance available for almost any crisis a business might face! If you need help in sorting through the insurance coverage your business needs, please consult with a Lakewood Financial agent to discuss your specific situation. We can help you tailor your insurance coverage to address the specific risks unique to your business. Reach us by phone at 941-747-4600, or click here to contact us online. Lakewood Financial Services is a locally owned, independent small business—let us help you protect your business from the unexpected.