28 Dec What is California Business Liability Insurance?
Having the correct insurance package is vital for any small business. California business liability insurance is crucial to the makeup of any business cover. Yet, the question remains: what is liability insurance and how does it work? There are a number of types of liability cover to which the following are usually the most common.
General liability: protection from third party damages
Liability insurance protects you should you be sued by a third party for damages or injury. The policy should cover you for the costs of your legal defense, as well as any other damages you may need to pay. This type of liability insurance is generally adequate for most businesses, particularly smaller companies, and should help provide peace of mind should you be sued for any reason.
Professional liability: for malpractice or errors
On the other hand, if your company is a specialist or professional firm such as an accountant, bookkeeper or architect, where advice you give to your clients is of a vital nature to their financial well being, you may be sued for negligence. Here it is advisable to take out added professional liability insurance, which is designed to cover you for damages as a result of malpractice or an error which causes injury or loss to your client or patient.
Product liability: protection against being sued from injuries incurred when using your products.
This is a third form of insurance which is designed to cover policy-holders in the event of someone sustaining an injury or illness as a result of using one of their products.
California business liability insurance is a major part of trading in the Golden State, and getting the right type of liability cover will depend on the type of business your company conducts. Further information on this subject, including a quote if required, can be found by contacting one of our agents to arrange a consultation.