All businesses, no matter how large or small, can greatly benefit from having the protection that liability insurance provides. This type of insurance is designed to protect you from lawsuits that are filed against your business.
We live in a very litigious society, and there are some people who believe that they can make a lot of money if they sue a business. You don't necessarily have to be doing something illegal, incorrect, or unsafe, in order to have someone decide to sue your business. Without liability insurance, you are basically on your own if your business gets sued.
Liability insurance protects you from a lawsuit that results in bodily injuries that happened to customers, vendors, visitors, or employees while the person was on your premises. In other words, it protects you in case someone gets hurt, and decides to sue your business.
Liability insurance also protects your business from lawsuits resulting from an injury that happened due to the actions of one of your employees, or due to negligence on the part of one of your employees. Let's say that someone you hired made a bad judgment call, or failed to take the proper safety precautions before doing something. This act resulted in someone getting hurt. That injured person decides to sue your business. Liability insurance offers you some protection in case this sort of situation happens to your business. Another thing that liability insurance covers is property damage that is caused by one of your employees.
There are four types of liability insurance: General liability insurance, professional liability insurance, product liability insurance, and employment practices liability insurance, or (EPLI). Each type focuses on specific situations.
General Liability Insurance, which is also called commercial general liability, or (CGL), is the main type of liability insurance.
It protects your business against claims of injury and property damage, as you would expect.
It also provides protection in cases of libel, slander, or situations involving infringement on intellectual property.
All businesses can benefit from this type of liability insurance.
Professional Liability Insurance is for businesses in the service industries, (such as retail, government services, doctors, lawyers, or restaurants, to name a few).
If someone sues you, or one of your employees, due to an error that was made in the service that was being provided to a customer, this is the type of liability insurance that will protect your business.
Professional liability insurance might also be called malpractice insurance, or errors and omissions insurance, depending on what kind of service your business provides.
Product Liability Insurance is needed by businesses that sell a product, or that manufacture a product.
This provides protection to your business in case someone gets injured from using your product.
How much of this type of insurance you need depends largely on what kind of product you make, and the potential risks involved with that product.
Does your business sell pens, or does it sell wood burning stoves?
Employment Practices Liability Insurance, or EPLI, is the newest form of liability insurance.
This type of liability insurance protects you in case an employee, former employee, or a business associate sues your business.
It has become increasingly common for people to sue a business for wrongful termination, or charges of sexual harassment or discrimination.
In general, you can purchase this type of liability insurance as an occurrence policy, or as a claims-only policy.
Learn more about what types of insurance are available and what they cover at Rhino Insurance. There you can find information explaining the different types of insurance. You can also request a free quote to get started! Rhino Insurance grants you a limited license to access and make personal use of this site and not to download (other than page caching) or modify it, or any portion of it, except with express written consent of Rhino Insurance. This license does not include any resale or commercial use of this site or its contents; any collection and use of any product listings, descriptions, or prices; any derivative use of this site or its contents; any downloading or copying of account information for the benefit of another merchant; or any use of data mining, robots, or similar data gathering and extraction tools. This site or any portion of this site may not be reproduced, duplicated, copied, sold, resold, visited, or otherwise exploited for any commercial purpose without express written consent of Rhino Insurance. You may not frame or utilize framing techniques to enclose any trademark, logo, or other proprietary information (including images, text, page layout, or form) of Rhino Insurance and our affiliates without express written consent. You may not use any meta tags or any other "hidden text" utilizing Rhino Insurance's name or trademarks without the express written consent of Rhino Insurance. Any unauthorized use terminates the permission or license granted by Rhino Insurance. You are granted a limited, revocable, and nonexclusive right to create a hyperlink to the home page of Rhino Insurance so long as the link does not portray Rhino Insurance, its affiliates, or their products or services in a false, misleading, derogatory, or otherwise offensive matter. You may not use any Rhino Insurance logo or other proprietary graphic or trademark as part of the link without express written permission.
