Follow Us
We speak Spanish and Mandarin (中文)
Family of three on couch
business insurance forms

Know the Difference: Property and Liability Insurance

Your business illustrates how your love for doing something can affect the community. However, it is crucial to separate the romanticism behind your livelihood from the world’s realities. In other words, you have to take the right measures to protect not only your business, but also those around you.

Many insurance agents will recommend that you take out both property and liability insurance in Newark, DE. It’s important to have both because they are two different products that cover two different aspects of your business. Learn about their differences and strengths here.

Liability Coverage Protects You in a Lawsuit

When people talk about “liability,” they refer to any event that your business is legally responsible for. A liability is normally determined as the result of a lawsuit, and it might include accidents that result in a person’s injury, or if someone fails to fulfill a contractual obligation. Liability insurance can protect a business from such incidents by covering the costs associated with legal fees, hiring a lawyer, and providing compensation for damages. This protects a business from paying out-of-pocket costs.

Property Insurance Protects Your Livelihood

Think about property insurance as something that guards your day-to-day operations. These types of policies can provide coverage against loss or damage related to the building, supplies, equipment, and inventory. Depending on the coverage, property insurance protects you from different events, such as fires, theft, vandalism, or severe weather.

Property and liability insurance can protect you in different situations, so choosing both can help you in the long run. When choosing new policies, always be sure to consider the different options.