Designed to protect businesses, in the event of a lawsuit, business liability insurance is essential for almost any business. Without it, your business is left unprotected and even one unprotected lawsuit could mean peril for you and the business you have worked so hard for. But for every business, there is a different set of risks. No two businesses are alike. As a result, the insurance coverage will vary, depending on the type of business you own and operate. Protecting your business means purchasing the right type of liability insurance

General Liability Insurance: Business owners purchase general liability insurance to cover legal hassles due to accident, injuries and claims of negligence. These policies protect against payments as the result of bodily injury, property damage, medical expenses, libel, slander, the cost of defending lawsuits, and settlement bonds or judgments required during an appeal procedure.

Product Liability Insurance: Companies that manufacture, wholesale, distribute, and retail a product may be liable for its safety. Product liability insurance protects against financial loss as a result of a defect product that causes injury or bodily harm. The amount of insurance you should purchase depends on the products you sell or manufacture.

Professional Liability Insurance: Business owners providing services should consider having professional liability insurance, also known as Errors and Omissions Insurance. This type of liability coverage protects your business against malpractice, errors, and negligence in provision of services to your customers. Depending on your profession, you may be required by your state government to carry such a policy. For example, physicians are required to purchase malpractice insurance as a condition of practicing in certain states.

Commercial Property Insurance: Property insurance covers everything related to the loss and damage of company property due to a wide-variety of events such as fire, smoke, wind and hail storms, civil disobedience and vandalism. The definition of "property" is broad, and includes lost income, business interruption, buildings, computers, company papers and money.

Home-Based Business Insurance: Contrary to popular belief, homeowners' insurance policies do not generally cover home-based business losses. Depending on risks to your business, you may add riders to your homeowners' policy to cover normal business risks such as property damage. However, homeowners' policies only go so far in covering home-based businesses and you may need to purchase additional policies to cover other risks, such as general and professional liability.

_ In today's business world, companies providing products or services to third parties need protection beyond their general or business liability insurance policies. Among other perils, standard GL policies respond to claims or lawsuits made by third parties for bodily or physical injury to, or loss of use, of tangible property. However, due to the impaired property exclusion, GL policies do not provide protection for claims when the insured's product fails to perform without physical damage accompanying that failure. In addition, GL policies do not respond to claims for injury to intangible property, such as damage to data. Without Errors and Omissions insurance, other financial losses suffered by one of your customers can be detrimental to your company's bottom line.

Companies at Risk:

Companies that should purchase E&O insurance policies include those that:

• Manufacture, assemble or install to customer specifications
  
  
• Provide design work
  
  
• Select raw materials for others
  
  
• Provide services, advice or instructions to others for a fee
  
  
• Subcontract work
  
  
• Print, package or deliver materials for clients
  

Securing Insurance:

You will need a computer, internet connection, and phone if you want to start your hunt for a provider of such insurance. The only way to limit your corporation’s liability with potential errors or omissions is by securing Errors and Omissions insurance. Moat insurance providers prefer working with businesses that have been around for more than a year. Try to talk with quite a few agents so that you can identify the best deal. You need to find an airtight insurance policy that is crafted to meet the individual needs of businesses.

Make sure that you discuss the different aspects of your corporation especially the ‘needs’. Do not forget to describe your services or products so that the right policy can be structured to meet such needs. Fill out the application form and comply with all the requirements especially in the submission of certain documents. Oftentimes, this will include submission of tax returns, balance sheets, business license, and other documents. You have to ensure that your policy is always active and try to avoid incurring lapses. Take note of the expiration term of your policy and reactivate it when needed. If you do not have any lapses, the insurance provider will be more than willing to have your coverage reactivated in 30 days.