Business insurance quotes

Legal Liability Insurance

Legal liability insurance is, without doubt, an extremely important safety net for any company that typically provide goods or services to the public. Imagine if during the course of your business activities a customer became injured, or if you fail to meet their expectations. However, with a legal liability insurance policy in place you are able to protect your business, and its assets, against any resulting legal action. If your business happens to be a sole proprietorship, this type of insurance policy is even able to protect your personal assets. You will find that the vast majority of insurance companies are able to offer legal liability insurance, although the premiums and benefits will vary depending on your specific type of business.

Legal liability insurance is a necessity in the business world, and whether you are a sole proprietor, small or large business, or even in some cases an individual, it is highly recommended that you have this specific type of insurance. There are many risks involved in the business world and should you cause injury to another person, another person's property, or another business, the resulting litigation and legal action could cause you financial ruin. It is often said that a sole proprietorship or extremely small business should always have legal liability insurance as is able to protect personal assets that may include your home and your savings. However, with that said, this type of insurance is suitable to any size business.

The most common type of legal liability insurance is car liability insurance. This has now actually been mandated in almost every single state. Depending on where your business is located and the activities you undertake, you may even find that it is mandatory you to currently have legal liability insurance. A prime example of this would be illegal and medical malpractice insurance and worker's compensation insurance. It is advisable that you check the local laws and regulations which can then guide you to whether it is mandatory to have this type of insurance for your business. It makes perfectly good business sense that a business should consider both their activities and their products and they risks that they are likely to present. This can then help you to determine whether specific products or services will require additional insurance coverage.

A lot of people may consider that legal liability insurance is not specifically necessary. Let's face facts, it's just another added expense that comes with running a business! If this type of insurance is not mandatory for your particular business or for the state within which you are operating, it is then very much down to a personal decision. You should balance the risks of running your business against the assets that you have, and the ability that your business has to cover any potential risks. Another example would be a delivery company. A delivery driver is at risk of having an accident each and every time they take out a delivery. Imagine if this company used big trucks or lorries and caused a death during an auto accident. The financial implications could be devastating as a claim for wrongful death could cost millions of dollars. Therefore, it is important that you fully consider all the risks that are involved with running your business.

You will typically find that the majority of insurance companies are able to offer legal liability insurance. However, as mentioned, the type of cover you should get will very much depend on your business activities, and the products you sell. It is vitally important as a business owner that you consult with numerous experts in this field to fully understand the risks that are associated with your business. Often, you may find that certain companies will have a completely unique insurance policy to suit their own specific needs.

You will also find that the cost of legal liability insurance will vary, and once again this will depend on the type of business that you have, the type of products and services that you offer, and the risk that is associated with this business. Taking our example of a delivery company above, the cost of legal liability insurance is likely to be tens of thousands of dollars every year. However, you are also able to customize this type of insurance policy and you may wish to exclude certain forms of coverage in order to lessen your overall expense.

It is often said that the professions that are most likely to need legal liability insurance will include lawyers, doctors, nurses and accountants, although there are many other businesses that can pose potential risks to their customers. It is also important to remember that legal liability insurance is not specifically about protecting your business against the possibility of injury or death to a customer. There are many businesses who offer services and products - what happens if a customer is completely dissatisfied with the service or product that they have received from you?  They may consider it to be well beneath their expectations or not to match up to the expectations that you have previously promised. This is yet another scenario where legal liability insurance is able to protect both you and your business.

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