Business liability insurance offers protection to a business owner in case of a third-party claim or a formal lawsuit. Coverage comprises of financial liability incurred along with the costs related to the company’s legal defense. There are three kinds of business liability insurance: professional liability insurance, general liability insurance and product liability insurance.
Any kind of ownership, in a small business or a bigger one, especially a partnership or sole proprietorship places one’s personal finances at risk, especially in case of a business-related lawsuit. Even those working under Limited Liability Corporation still stand exposed to personal risk. The aim of business liability insurance offers better protection as it is based on a legal structure. Just make sure that when you get additional insurance, unnecessary coverage.