As the owner of a small business, you need to make sure that you are protecting yourself and your business from damages suffered by a third party. The coverage provides compensation for any damages suffered by a third party. Business owners who ignore getting this insurance coverage find themselves in a mess when they have to pay liability charges after employees get into accidents at work. Here are some of the things you need to know about getting Commercial Liability Insurance in Scranton PA.
What liability insurance coverage
There are four categories of events that are protected under the commercial liability coverage. These include:
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Bodily damage
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Damage to another person’s property
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Personal injury, which includes slander and libel
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False or misleading advertising
There are some state governments that have made it compulsory for companies to have this insurance coverage. This liability coverage excludes all employees covered by workers compensation.
Determining whether you need commercial liability insurance
Research shows that about 66 percent of businesses in the country are either partnerships or sole proprietorships. If your business is of this nature, you are at risk of getting sued by employees in case of damages. People that own LLC’s tend to be less liable in these scenarios, however if you hurt someone or act in a negligent manner, owning an LLC will not make any difference.
Forms that commercial liability insurance takes
The insurers normally have several business liability insurance options to protect their businesses from significant losses.
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Commercial general liability: This is the most common type. It is normally bundled together with property insurance. It covers personal injury.
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Professional liability insurance: This one covers errors and omissions. In case you have been sued for negligence or malpractice, this coverage will protect you.
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Product liability coverage: This coverage protects from losses that are occasioned by accidents that happen during the process of using your product.
These are just a few of the products that are available under Commercial Liability Insurance in Scranton PA. You can only determine the right insurance product when you consult an insurance company. They will assess the nature of your business and recommend an appropriate policy type.
