Small Business Insurance

Small Business Insurance : Commercial Liability Insurance

Commercial liability insurance is a term often used in business insurance, and can generally mean slightly different things in different policies.

It is a generalized term, and what is important is to understand the types of liability insurance you might need, and see if the term commercial liability insurance covers them.

General Liability Insurance .

This normally refers to a type of insurance that covers your liability to people injured or in some way able to seek damages whilst on your premises.

This could refer to staff, members of the public, other traders etc, pretty much anyone.

Take special care if you are running a home based business to clarify whether or not your normal domestic policy includes liability as just described, if running a business from home.

It may be possible to extend your domestic policy to include it, if not you will need to purchase a separate insurance policy.

Product Liability

Most people are aware of the nature of product liability, and product liability insurance.

Be mindful that you will need this insurance if you are in any way connected with promoting a product or good.

This could be as a manufacturer, sales agent or importer.

Get good legal advice as to what your liabilities could be, and get decent insurance cover. Mistakes happen, things go wrong, and they may well be things that you have no control over or even any idea could go wrong until they do.

Make sure your product liability insurance covers you many years ahead in case problems arise in the future, even after you have stopped trading or sold the business.

Professional Liability Insurance

Sometimes also referred to as e and o insurance, meaning errors and omission, or as directors or partners insurance.

Essentially the issue of liability is if you make a mistake or get things wrong in a professional capacity, or as a director of a business, and in some way damage or injure a client as a result.

The need for this type of insurance can apply to any professional, any director or partner in a business.

The test really is if someone relies on advice or work done for them in such away as they have an expectation that you have a particular expertise in said area that they can rely on.

This is an important distinction, because it means that you don’t strictly speaking have to be a specific profession, if the third party has a right to expectation of expertise based on your knowledge, experience etc.

Directors or partners e and o normally refers to failure of a director or partner to comply with legal or statutory responsibilities that go with that position, and are held liable as a result, although it can include professional misconduct as described above.

These terms can mean different things in different contexts, so please get legal advice as to what you liabilities may be, and use that advice to guide what insurance policies you might need.

Image may be NSFW.
Clik here to view.Image may be NSFW.
Clik here to view.Image may be NSFW.
Clik here to view.Share