Why You Need Business Liability Insurance
What is Business Liability Insurance?
Sometimes called Commercial Liability Insurance or Commercial General Liability Insurance,
Business Liability Insurance provides your business with protection against claims of damage or injury caused by you or your employees to another. Business liability coverage is not mandatory for businesses operating in Alabama. However, accidents do happen, so it would be wise to hold sufficient business liability insurance coverage to protect your property and other assets.
What Does a Business Liability Insurance Policy Cover?
A typical business liability policy will cover:
- Property Damage: covers damage caused by you or an employee to someone else’s property.
- Bodily Injury: covers physical injury to a non-employee at your place of business or injuries caused by you or an employee at a client’s home or place of business.
- Personal Injury: Covers costs incurred from acts that cause damage to a person’s reputation, such as libel, slander, copyright infringement, false arrest, and similar acts.
- Legal Defense and Judgements: Covers costs, up to the limit of your coverage, to defend against lawsuits and judgments.
How Much Business Liability Insurance Should I Carry?
The type of business you operate and/or they type of products your business manufactures typically dictates how much liability coverage you should carry. The standard coverage for a small Alabama business is between $500,000 and $1 million. You should consider increasing this amount if your business has a high volume of interaction with the public, i.e. a retail establishment or restaurant.
Other Business Insurance Options and Requirements
As mentioned above, business liability insurance is not mandatory in Alabama. However, if you have employees, Alabama law states that “any business that has five or more employees, other than contractors, is required to have workers’compensation coverage.”
Other available business insurance options include:
- Product Liability Insurance
- Professional Liability Insurance
- Commercial Property Insurance
- Home-Based Business Insurance
A Liveoak agent can help you parse through all of your options, ensure you’re in compliance with any state regulations, and create a policy specific to you and your business.