Why Do I Need Liability Insurance?

When you have your own business, you need to protect your business assets against the risk of loss or damage caused by theft, fire, smoke, explosion, storm, flood, earthquake, riots, vandalism and various other unforeseen events. For that they are safe on the property. There are other risks that may affect your business, not directly related to your business assets and are not caused by any of the above events. These risks relate to the damages they may suffer its customers or third parties due to an accident at his place of business because their product, or for any act or omission by staff of your company, for which your business could be liable in the event that the affected person files a complaint or demand, or when your business is liable for damages.

Even if you are aware of the risks they may face in your business and despite good control and good performance in risk management, liability insurance can protect your business from adverse effects that could result in event that has to answer for damages caused to third parties. The types of risks that affect your business is depend on the rotation of your business. For example, a construction company faces different risks than those faced by a designer graph that works mostly in an office or workshop. But some examples of the risks that any business might face include:

• Someone falls and is injured while visiting your place of business and brings a claim for medical expenses.
• A customer was injured by a product that you sell and claim compensation.
• A customer has an allergic reaction to eating a food product or beverage of your business and file a claim.
• Someone in your company makes a negative comment to the press about a competitor and the competitor has a defamation suit against his employer.
• Due to an overloaded electrical outlet, a fire that damaged the building you are leasing space and the building owner will claim your business the cost of repairs.
• One person from your company looking for a client at the airport to take you to a meeting. Along the way, has an accident and the client is injured.
• Has a contract to deliver specific products to that date. Due to a hurricane, lost power for a long time and can not produce or deliver products on time. The client presents a claim for breach of contract.

These risks may be covered by different types of insurance, some more general and more specific. Liability insurance, or insurance against third party liability, provides coverage for various types of risks your business faces in its activities and relationships with customers and the general public.