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Types of Liability Insurance

3 Different Types of Commercial Liability Insurance

Every business has some measure of risk, which is why you must be are aware of the different types of liability insurance your business might need including:

  1. General Liability
  2. Professional Liability
  3. Employers Liability

Whether you are a business owner or a manager, it is important that you know about the three different types of liability insurance so that your place of business has the right coverage for all circumstances.

Here is a summary of what each type of liability insurance entails.

1. General Liability Insurance

General liability coverage can protect your business in the following three situations:

Physical injury:

If a customer or third-party client experiences bodily injury, general liability insurance can help to cover the costs that occur as a result.

For example, if a customer slips on the wet floor at your place of business and breaks an arm, general liability insurance will help to cover the person’s medical expenses. It is important to note however, that this type of liability insurance does NOT cover physical injury to employees of your business. Employees are covered under WSIB (Workplace Safety Insurance Board).

Property damage:

Property damage includes any damage caused by you or an employee to a third party’s property. If an employee damages a window of a client’s home while performing construction on the client’s property, this type of liability insurance will assist your business by covering some of the costs of replacing the client window.

Reputational harm:

In a situation where an error was made in the advertising or a statement was made about your business that damaged its reputation, reputational harm can help to cover some of the losses.

For example, if a dissatisfied customer speaks poorly about your business and this results in a profit loss, general liability insurance can help to cover these losses.

2. Professional Liability Insurance

Professional liability insurance covers companies in situations where your company is held responsible for not meeting a deadline or for errors in your work. Everyone is human and is vulnerable to not meeting a company outlook for a variety of reasons, but these circumstances can result in a lawsuit.

For example, if your client suffers a loss as a result of your business not meeting an agreed upon deadline, your client might choose to serve you with a lawsuit to compensate for their losses. Professional liability insurance can help to cover the losses that transpire as a result of the lawsuit.

3. Employers Liability Insurance

When an employee experiences a work-related physical injury or illness, employers liability insurance will support your business by helping to cover the medical expenses and partial lost wages of the employee. Additionally, in the unfortunate event legal action is taken because of an employee’s work-related injury, this type of liability coverage will help to cover legal expenses such as the cost of an attorney.

Every business is unique and requires liability coverage for many different situations. For this reason, it is essential to be aware of the different types of liability insurance available so that you can protect yourself as well as your business and its assets.

Let Us Help You with Your Liability Insurance Needs

Huronia Insurance Group in Barrie is one of Ontario’s leading business insurance providers. If you would like more information about any of the three types of liability insurance we offer or if you would like a no-obligation insurance quote, please contact one of our insurance brokers today at 1-866-955-8386.