While not always legally required, liability insurance is highly recommended as it protects against potentially significant financial losses from lawsuits. Some industries or contracts may require businesses to have liability insurance in place.

Common types of liability insurance include general liability (covering bodily injury and property damage), professional liability (covering errors and omissions in professional services), and product liability (covering damages caused by products sold or manufactured).

Premiums are based on factors such as the type of business, its size and revenue, the industry it operates in, the level of risk associated with its operations, past claims history, and the amount of coverage selected.

If a claim is filed, immediately notify your liability insurance provider, document the incident thoroughly, and cooperate with your insurer’s investigation. The insurance company will provide legal defense and manage the claim on your behalf, helping to resolve it efficiently.