As a business, your goal is to provide a product or service to your client or customer. Sometimes, things go wrong. When this happens, it can lead to a few key problems for your business. Most often, it is possible to settle problems quickly and without any complications. Other times, the problems are more serious. The customer suffers a significant loss. Your business insurance needs to provide extensive coverage at this time. Liability insurance may help cover those large claims. How does it work for you?
What Coverage Do You Have?
Review your business insurance policy. Get an understanding of what your coverage offers. Most BOP policies and general liability insurance policies offer a first layer of protection. They may offer $500,000 or $1 million for liability claims. Sometimes, it is just a fraction of this, however. These policies offer coverage for claims up to the amount on the policy.
You may wish to extend your coverage in some industries. For example, if you are a doctor, dentist, consultant, or lawyer, you may face larger or more frequent claims. As a result, you may need to extend your coverage. You can do that with professional liability insurance. It adds more protection to your business. With a higher claim limit, there may be less risk to you long term.
How Does Liability Insurance Cover Your Risks?
Consider what may happen. A customer suffers a significant injury due to your actions or inaction. Even if it was an accident, you may be financially responsible for their losses. Your business insurance can help you in several ways:
- Your insurance company works to provide coverage for verifiable losses. It does not just pay for anything. It can help cover medical bills, lost time at work, pain and suffering claims, and much more.
- The insurance company will offer a settlement in some cases. Settlements may help you to get past the incident faster, for a flat fee. The company works to negotiate these settlements for you. It then pays out that settlement, up to the limits of your policy.
- If the case goes to court, your policy is there to help you. It helps pay for your legal defense. It can also help pay for any judgment against you. Your policy is there to cover these losses, too.
Business insurance is complex. It works to minimize how much you must pay to those who file such claims. Yet, it works behind the scenes. You may not have to worry about the incident as your insurer does the work for you in settlements.
Also Read: Protection Within Your General Liability Coverage
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