Liability Insurance for Small Business

Operating a business is complex and comes with inherent risks. Liability Insurance should be part of your overall business strategy and disaster planning. It is important to ensure your company is protected from unexpected liability issues that can arise in various ways over the course of doing business. Liability insurance can protect you, your staff, your customers and even your suppliers.

Key liability insurance issues facing companies

There are many reasons why executives have recently become more concerned about their companies’ legal liability:

  • Liability claims are becoming more expansive
  • The number of class actions is increasing
  • Product liability and recall claims are becoming more challenging
  • New technology and innovation are bringing changes in the industries which also affect liability scenarios
  • Environmental claims are increasing since the focus on our environment is stronger than ever
  • Supply-chains are getting more multinational
  • Asian and European markets increased the awareness in regards to consumer rights and compensation

Due to the possible impact of a claim, liability insurance should be a major part of your business’ protection. You can operate confidently and focus on your business while liability coverage is in place which responses for unforeseen circumstances. Liability insurance covers your business for third-party claims induced by bodily injury or property damage for which you are legally liable. The coverage is based on three major benefits. Your insurer will determine if a claim is reasonable in order to reimburse the complainant or to refuse the reimbursement in case of an unfounded claim. Involved defence costs are included too.

Liability insurance coverages are:

  • Commercial general liability (CGL): General protection for your business against third-party claims
  • Product liability: Protection for your products’ liability risk
  • Recall cost insurance: Recall costs can be very expensive in order to prevent bigger damage – recall cost insurance covers recall’s expenses including PR-measures and notification costs
  • Environmental liability: Coverage designed for your potential environmental liability
  • International Liability Program: Operate self-assured on multinational basis with a tailored international liability program

Risk Management Tips

  • Have a strategy in place for emergencies
  • Have relationships with a lawyer who understands your business
  • Sustainable review of contracts with suppliers and distributers
  • Sustainable review of product’s description and customer warnings
  • Ongoing quality checks of your products
  • Train all employee on the impact of liability claims
  • Conduct a risk management assessment with professionals who understand your business and can help build strong mitigation, recovery and insurance strategies

Reliance Insurance analyzes your liability risks, develops a tailor-made insurance solution and supports you in case of any claim. Furthermore, with our proprietary risk management concept, we are trying to help you prevent disasters and any claim on a day-to-day basis.

Even a minor mistake could end up in a major claim. Protect your business against your industry and company specific liability risks.

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