Liability insurance plays a crucial role in business continuity, which measures your company’s ability to function regardless of disruption. Having comprehensive liability coverage protects your business in the event of a lawsuit or claim that might otherwise leave you in dire straits. Essentially, liability insurance makes it easier to quickly resume service delivery. At Grand Mutual Insurance Services, we can help you assess the level of coverage needed to keep your business going despite pending liability cases.
The Link Between Liability Insurance and Business Continuity
You can protect your operations against delayed deliveries and unfinished orders in the face of legal actions. Liability insurance safeguards your reserves from financial losses due to legal costs. In fact, you can shield your company against future risks by using liability insurance as part of your risk mitigation strategy.
Your business continuity plan should incorporate liability insurance and explain how it can protect you, your customers, and partners against known risks and uncertainties in your industry. The team at Grand Mutual Insurance Services can help you design a liability policy that best meets your needs.
Types of Liability Insurance
General liability insurance lays the foundation to cover a variety of potential claims. It pays for bodily injury, property damage, and personal injury for covered events. For example, if a customer slips and falls in your business, general liability insurance may cover the associated medical expenses. If your employee damages client property during a service call, this is also typically covered under liability insurance. Additionally, this coverage can handle all legal costs associated with slander or false advertising claims against your business.
Professional Liability Insurance
Professional liability insurance, or errors and omissions coverage, shields your business if your service causes financial harm to a client. For example, if an accountant miscalculates a client’s tax liability, the client may end up paying penalties. If the client ends up suing your company, E&O insurance will reimburse the client for their losses and pay for the associated legal fees. In addition to covering negligence, professional liability insurance also handles cases of misrepresentation. If you own a construction firm and your architect makes a mistake in the building design, E&O insurance will probably cover the cost of repairs and legal fees.
Product Liability Insurance
If you’re a distributor, manufacturer, or wholesaler, include product liability insurance in your risk management strategy. Product liability coverage can positively impact your business continuity by covering the legal cost of a defective product. Here are some examples:
- A toy sold in your store injures a child. Product liability insurance can cover medical and legal expenses.
- An appliance you manufacture catches fire while operating. Liability insurance pays for the property damage resulting from the fire.
Umbrella Insurance
If you need additional liability coverage, consider adding umbrella insurance to your policy. This will extend your coverage past the limit of your primary liability insurance. Your agent can help you evaluate how liability insurance can protect your business against potential interruptions. It’s critical to match your policy to the unique needs of your company and come up with a workable, effective liability insurance package.
Contact a Commercial Insurance Agent Today
Liability insurance goes a long way toward helping you maintain business continuity. During a business disruption caused by a lawsuit or claim, you need to focus on keeping your business going. That’s easier to do with the financial security offered by liability insurance. Your agent can help you explore the different types of liability insurance, including E&O and product liability coverage. You can even add extra protection with an umbrella policy.
Contact Grand Mutual Insurance Services for a free quote today!
Have questions? Our team at GMIS is here to help.
At Grand Mutual Insurance Services, we are committed to providing you with the most up to date information on the insurance market. Reach out to GMIS today for personalized guidance, and maximize advantages for growth and success:
info@grandmutual.com
888.732.5994