Liability insurance in Newark, DE, can help protect your business from claims like malpractice or bodily injury, which could turn into expensive lawsuits or legal liabilities. The level of coverage a business needs depends on the type of business you operate. Further, there are also various types of liability insurance coverage you’ll need to consider when looking for a complete policy.
The three main types of liability insurance coverage are:
This coverage helps protect you against claims that your business caused bodily injury or property damage to others. It also covers errors in your advertising or reputational harm. It’s crucial to note that general liability insurance does not cover property damage to your business or your employee’s property. A commercial property insurance policy helps cover those claims.
Professional liability insurance, also called errors and omissions insurance (E&O), helps cover claims that your business made mistakes in the services you provided. For example, if a client claims you gave them inaccurate financial advice and sues you, professional liability insurance can help cover your legal defense costs.
Professional liability will not cover employees who get work-related injuries or illnesses. Your business needs workers’ compensation insurance for that kind of coverage.
Workers’ comp is a type of employer liability insurance that provides financial benefits to employees if they get injured or sick due to their job. Depending on your state, you may be required by law to buy workers’ comp coverage. Even if it’s not the law in your state, it’s still a smart idea to arrange for this type of liability insurance coverage.