Liability insurance, or Commercial General Business Liability coverage, protects a company’s assets and pays for medical costs incurred if someone ends up being injured on your property, or for property damages or injuries caused by you or your employees.
Princeton, New Jersey business liability insurance also covers the cost of your legal defense and any settlement or award in the event you are found liable in a lawsuit. Typically this will include compensatory damages, nonmonetary losses suffered by the injured party, and punitive damages.
Does your business need liability insurance?
The obvious answer is “yes” because we live in such a litigious society. Plus, this is a wise investment that doesn’t cost much, with annual premiums ranging from around $750 to $2,000, depending on your particular line of business and coverage needs. And it could be the difference between losing the thousands, if not millions, of dollars likely needed to fight your case in a courtroom.
General liability insurance can be purchased on its own, but it can also be included as part of a Business Owner’s Policy (BOP) which bundles liability and property insurance into one policy. If you have a BOP, check it out to see what your liability coverage limit is, and if it is low, you may benefit by purchasing additional coverage through a separate policy.
Determining your coverage needs
Your business location is a factor that comes into play when deciding the amount of coverage you need. It also depends on the type of business you are in and any perceived risks associated with it. For example, a building contractor will often need more coverage than a web designer or consultant. Talking to a licensed insurance broker for advice on this matter is a sensible solution, so don’t just rush out and buy a policy.
How Princeton New Jersey business liability insurance works
Your general liability policy will outline the maximum amount the insurance company will pay against a liability claim. So, if your small business gets sued for $300,000 for medical costs associated with an injury caused at your place of business, and there is an additional $100,000 in legal fees, and your coverage maxes out at $300,000, then you’re responsible for paying the difference of $100,000. In this case, purchasing an umbrella insurance policy that increases your coverage limits will resolve issues of this nature. Speak to a reputable agent with any questions or concerns.