Creating, owning and/or running a business doesn’t come easy. It takes sacrifice, focus, hard work and strategy. Protecting the life of a business isn’t just about the business plan and day-to-day processes. It also can be about insurance protection.
Commercial liability insurance is also referred to as business liability insurance or general liability insurance. A business that pays for such protection theoretically is protecting itself from the potential financial damage of a lawsuit brought by an outsider.
What kind of legal claims might bring down the finances as well as reputation of a business? The following are some of the types of legal matters that threaten the financial stability of companies:
Personal injury claims: A common type of lawsuit that can be filed against a business is a premises liability case. This is when, for example, someone claims to have slipped, fallen and injured themselves because a business didn’t provide a safe environment. A business can be held liable to pay for the medical bills associated with an alleged injury.
Property damage claims: Did a customer’s property get damaged because of an issue at your place of business? Did a fire cause damage, for example?
Legal defense cost: Your commercial liability insurance coverage should cover the cost of the legal support you need when faced with a lawsuit against your business. In fact, as we share on our commercial liability page, your CLI provider should be the party to defend you and your interests in a legal dispute.
As with other types of insurance, sometimes businesses that pay for commercial liability coverage will face frustrating obstacles. If a provider fails to defend your business and/or pay the claim that is endangering its prosperity, work with an insurance attorney who will properly stand up for you and your company.