The Need for Liability Insurance

So you’ve started a new company. What if someone suffers and injury and decides to name your company in a lawsuit?. In this litigious world we live in you can’t be too careful. Say you moved some equipment around and a piece fall off and someone trips and a customer trips and falls on it? If you have a store, what if a display fell on a customer? This is known as the Bodily Injury portion of a CGL (Commercial General Liability) policy.

If you’re a contractor, most customers will only deal with a business that carries insurance because their home insurance won’t respond for work done by contractors. Property Damage as a result of your operation that you are sued for also falls under your CGL.

Another consideration, if you run a licensed restaurant and someone has a few too many drinks, leaves your establishment, and ends up in a car accident. You may be held responsible for that accident if the customer claims that your staff served them too much alcohol.

Perhaps you’re thinking none of this applies to you because you just run a small office operation with no customer traffic. But what if you write something in the name of your company and someone takes offense and feels that it was slanderous to their character? The Personal injury portion of the CGL is there to respond when someone feels injured by your company in a way that’s not physical.

Companies are often the target of litigious events, even if they are unfounded. That is why it is highly recommended for any company to obtain a CGL policy. Do you really want to be dealing with the legal costs that accumulate when someone decides to target your organization?

You may want to take it a step further if you are in the business of giving advice or make making educated recommendations (such as doctors, IT professionals, architects, management consultants). E&O (Errors and Omissions) Insurance is there for when you or your employees have done something they shouldn’t have (error) or when they neglected to do something they should have (omission). It is also known as Professional Liability or Malpractice Insurance.

Another more specific coverage comes into play for D&O (Directors and Officers) insurance. This is there for when legal action is brought forth for alleged wrongful acts in their capacity.

And finally, there is a rising new concern in today’s world with the rise of technology: Cyber Liability. Some companies have worked this into their coverage or offer it as an optional endorsement that can be added to your policy. While other companies have created comprehensive products to provide you with the coverage you need.

At Multirisk we have staff with decades of experience who can help you understand your needs. Don’t be left regretting your decisions when the time comes when your insurance decisions are tested.

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