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Liability Insurance For Small Business

by Admin on October 27, 2011


here are at least three forms of liability insurance for small business a business owner should consider maintaining for his or her small business. The need for liability insurance has increased greatly over the last 30 years with the skyrocketing number of lawsuits levied against companies of all sizes for everything from personal injury to libel and slander. One type of liability insurance that is most common is General Liability Insurance. This type of insurance provides coverage for your assets and your business from such claims as personal injury, libel and slander. This type of insurance is generally included in a larger package of liability coverage.

Another type of liability insurance to consider using to protect your small business is Professional Liability Insurance.This form of insurance is very common among the individual professions and takes many forms, such as Malpractice Insurance for doctors and Errors and Omissions Insurance for such professions as financial advisors, lawyers, and accountants. The types of coverage help these professionals defend against lawsuits brought personally against them. Malpractice Insurance, in particular, has been mentioned in the news lately when the topic of Tort Reform is brought up by the Congress.

Tort Form and Employment Practices Liability Insurance

Tort Reform is a movement among Congressional Republicans that seeks to cap the amount of damages that can be sought in cases involving those such as malpractice. The general idea is that people are suing these professionals for inordinate amounts of money for the damages they believe they have sustained. This legislation was proposed under the administration of President George W. Bush but never made it to the floor of the Senate, or the floor of the House of Representatives, for an actionable vote. Because no action was taken, Malpractice Insurance and other forms of Professional Insurance maintain very high premiums in order to cope with the litigations brought about by consumers.

A third type of general liability insurance for small business to consider is Employment Practices Liability Insurance. This insurance protects the small business against claims of violations of the Equal Opportunity Employment act, sexual harassment, discrimination, and wrongful termination. This type of liability insurances protects the employer from claims—legitimate or not—regarding such equality-based issues. The evolution of such claims—particularly the sexual harassment surge in the late 1980’s—made it necessary for employers to purchase such protection to defend against such charges. This kind of insurance enjoyed a surge in its necessity throughout the 1990’s when there were frivolous claims of sexual harassment brought by those looking to cash in on the assets of their employers.

Employment Practices Liability Insurance also protects the assets of a small business from claims of discrimination. While racial discrimination is the most common claim, recent developments in the courts have made discrimination based on sexual orientation legitimate against a company’s assets. This development caused an upsurge in the number of businesses adding this type of insurance to its assemblage of coverage in order to, once again protect against frivolous, predatory lawsuits.

Product Liability Insurance

Another form of liability insurance for small businesses that a small business should certainly consider if their business is a manufacturing outfit is Product Liability Insurance. This is the type of insurance that protects a business from claims of damages brought about through a customer’s use—or misuse—of your wares. When such an event takes place, the company is protected in lawsuits brought against them. There is also a point relative to each business where it is in the best interest of the company to recall that or other products because of the potential hazard.

Claims made against businesses in the past have led to protections we have in the marketplace today. The double—and sometimes triple—seals on over the counter medications are an example of a company’s reaction to such claims. Another change to cover the dangers posed by foods was the implementation of legible contents and nutritional information placed on food packaging. Food activist groups, along with the U.S. Food and Drug Administration created a rule that all foods sold to consumers should have product information posted so that customers can see it and read it. This was the most far-reaching result of Product Liability Insurance.

Why Liability Insurance for Small Business is Important

In the following video they explain to you why general liability insurance for small business is important and not something you must forget or oversee. They explain to you why it is important and give you some really good and helpful information.

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