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What is Liability Insurance?
Liability insurance, also known as commercial insurance or third-party insurance, protects you in the event you are sued (by a third party) for claims that arise due to normal business operations. If you are a small business owner, there are many reasons why you should learn more about what commercial insurance means to you.
What does Liability Insurance cover?
The insurance you choose depends upon the details of your business. Some people choose professional liability insurance if they often provide a service. Some choose general liability insurance to cover claims against bodily injury and damage to property. Many business owners select both.
What are the types of liability insurance for businesses?
General Liability Insurance
General liability insurance, also known as commercial general liability (CGL), protects your business from another person or business's claims of bodily injury, associated medical costs and damage to property. Some examples of what could be covered are below:
- Bodily injury: A personal trainer is working with a client in their home. The client trips over the trainer’s gym bag and falls, breaking their wrist. The trainer’s general liability insurance policy could cover the client’s medical costs, including any lost wages, that result from the injury.
- Property damage and data loss: An IT consultant is working in a client’s office when they spill coffee on the server. The machine is damaged beyond repair and valuable data is lost. The consultant’s general liability insurance policy could cover the cost to replace the server and recover the data.
- Personal injury: A business consultant is overheard talking about a client in a false and unflattering way. The client finds out about the conversation and sues for slander. The consultant’s general liability policy could cover defense costs as well as any settlement or judgement.
Learn more about general liability insurance.
Professional Liability Insurance
Professional liability insurance, sometimes called errors and omissions insurance (E&O insurance), is coverage for another person's claims against businesses that provide professional and personal services. Some examples of what could be covered are below:
- Dissatisfied client: A business consultant advises a client to change several internal processes to increase productivity. The recommendations are not implemented as specified, and productivity drops by 15% rather than improving, and the client sues the consultant. A professional liability policy could protect the consultant, even if no mistake was made.
- Negligence: A human resources consultant is hired to update a company’s employment practices. Six months later, the client calls to say a part-time employee is suing the company because a key provision for the number of hours part-timers can work was omitted from the employee manual. The client makes a claim against the consultant, contending they were responsible for the mistake. The consultant’s professional liability policy could protect them, including defense costs.
Learn more about professional liability insurance.
Business Owners Policy (BOP)
BOP insurance is often used to provide balanced coverage for small businesses who also want to protect their own business equipment. Some examples of what could be covered are below:
- Office insurance for fire and business interruption.
- Electronic data loss insurance.
- Hired or non-owned vehicle liability insurance.
- Commercial crime insurance to cover the dishonesty of your employees.
Learn more about business owners policy.
Why choose Liability Insurance from Hiscox?
- Flexible payment options: The option to make monthly payments with no fees included, to ensure the most profitable management for your cash flow.
- Worldwide coverage: Protection for work done by your business in every corner of the world, provided the covered claim is filed in the United States, a US territory, or Canada.
- Claims responsiveness: We provide immediate defense for you when a covered claim is reported, regardless of whether the claim has basis, and if necessary, will appoint an attorney.
- Tailored Insurance: Insurance designed specifically to meet your needs and save you money.
Get a fast, free quote now and get that Hiscox confidence behind your business. If you prefer, you can call us at 1-866-283-7545 and speak with a Hiscox licensed agent, Monday – Friday, 7am – 10pm ET.
Hiscox Customer Reviews
John, Birmingham, AL
"Great experience.... I am glad I found Hiscox so we don't spend a fortune to protect our small investment and business. this is my first time as my wife and I own a hair salon and we just want the contents of the salon protected. and of course insurance to protect us from any other potential problems. As we had other quotes like state farm and their monthly payments were like $220/month and I thought that was crazy but I was told about Hiscox and the rep walked me through everything and made it easy for us."
"Quick and easy The staff were friendly, helpful, and efficient."
"Very impressed with the service. I was impressed with the efficiency of the person I spoke with, who understood my requirements and provided the policy that I needed. "
Barbara, Washington, D.C.
"Helpful and friendly customer service. My salesperson was as professional as she was a pleasure to deal with! She gave me appropriate information and was extremely helpful."
"Simple, easy experience from start to finish. Easy to use online experience followed up by very positive and easy human interaction. My rep was outstanding and even sent me a follow-up thank you! Service was better than dealing with my normal agent. Pricing was very competitive."
Marc, Philadelphia, PA
"Easy application process and personal follow up. The online experience was easy and straightforward, and the follow up questions I needed answered by an agent over the phone was just as easy."
This information is provided to assist you in understanding the coverage we offer and does not modify the terms and conditions of any insurance policy, nor does it imply that any claim is covered. Specific coverage terms can vary by class of business. Coverages are subject to underwriting and may not be available in all states.