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Business Liability Insurance Basics

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What is business liability insurance?
No matter how careful you are, the mere fact that your company interacts with the public leaves your business vulnerable to lawsuits. Legal costs, court fees and damages that result from claims of negligence or harm can be devastating to your business.

A business liability insurance policy helps pay legal fees and any damages for claims made against your business. While additional types of liability insurance are available, such as professional liability coverage, a business liability policy functions as your primary coverage.

Who generally purchases business liability insurance?
All businesses.

Why buy business liability insurance?
Lawsuits against businesses for seemingly insignificant events are more prevalent then ever. Your best line of defense is to have a business liability insurance policy in place, as it provides insurance coverage for associated costs should your company be named in a lawsuit.

What does business liability insurance cover?
There are three types of legal damages that are typically covered by a business liability policy:
  • Punitive — additional penalties and charges against the defendant in a lawsuit
  • Compensatory — existing, and often, future financial losses
  • General damages — non-monetary losses such as "pain and suffering" or "mental anguish"
Call Insureon for a Free Quote1-844-387-3238
Business LiabilityGet a Quote
Wells Fargo Insurance, Inc. (Minneapolis, MN) is a licensed agency that represents — and is compensated by — the insurer based on the amount of insurance sold.