Liability Insurance for Small Business Owners


Know more about Liability Insurance-

Liability Insurance is a type of General Insurance for individual for Business owner even for the home based business like Beauty Parlor, hair salon and clinic etc. Liability insurance is also known as Commercial Insurance. This insurance protects a business man or woman from any claim from their customers with in the coverage of your liability insurance policy. If you have your business at a small scale or owned a home based business still there are many reasons that why you should be aware of this Commercial Insurance, this will help you a lot to overcome from any legal claim related to your business.

What are these legal obligations or claim?

You can be liable to pay obligation in any situation like, suppose you have a retail shop of cosmetics, one customer purchased some products from you shop and used it at home which caused some allergic reaction to his/her skin. Next day he will come to your shop and claim for medical treatment because he/she purchased that product from your shop hence you become liable to pay for his/her treatment. If you have Liability insurance than you can take the cover against that claim otherwise you will have to pay from your pocket.

Let’s take an another example-

Suppose you own a business of making articles from Marble and different kind of stones. While designing any article your employee gets injured by marble cutting machine then you are supposed to bear all expenses related to his medical treatment. At same time if you have Liability insurance or Commercial insurance you can cover this amount from your Insurance policy otherwise it will become an additional cost for you.

This insurance also covers property damage or loss of assets- suppose you own a manufacturing business, due to the carelessness of your employee your raw material was damaged now this will effectively lead to a loss in your accounts. But at the same time if you have commercial insurance cover you can make over your losses.

These are the benefits of having Liability Insurance. We all can come across such situations in our daily business activity, so liability insurance is a very good option for investment to protect our business from additional business operation cost. But the major issue is that many of us are not aware this type of insurance and could not take the benefit of it rather increase the operating cost of business. Money dial suggests you may go for such General insurance policy from a reliable company which has a good credibility in the market. It is also suggest by money dial that consult with a good financial advisor.

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