Commercial general liability, commonly thought of as the "slip and fall" coverage, insures a business against accidents and injury that might happen on or away from its premises, as well as certain exposures relating to the carrying out of its business operations.

It protects the business owner from payments for bodily injury or property damage to a third party, for medical expenses accruing to the underlying incident, for the cost of defending lawsuits including investigations and settlements, and for any bonds or judgments required during an appeal procedure.

Home-Business Liability
With so many people now working out of their homes, it's worth noting that the liability coverage on your homeowner's policy may not apply if a customer or messenger is injured on your property. And since a standard homeowner's policy comes with only a limited amount of coverage for business equipment, usually up to $2500, those who work at home should consider supplementing their insurance.

Business risk exposures to consider:
1) General Liability
2) Errors and Omissions
3) Director & Officer protection
4) Business Overhead expenses
5) Employee Group Benefit plans

Some might argue that employee group benefit plans are not necessarily a risk exposure. But picture this: Suppose its common practice in your industry for a business to offer health/dental insurance as well as 401k participation to its employees. If a firm within that industry has taken the position that they are not going to provide these benefits to employees, the firm has now exposed themselves to the recruitment risk of competitor firms bidding for their top employees with more attractive compensation & benefits packages.

Coverage of these business risks will be discussed in more detail in the chapter that follows.

Introduction to Personal Insurance

Related Articles
  1. Small Business

    Creating a Risk Management Plan for Your Small Business

    Learn how a complete risk management plan can minimize or eliminate your financial exposure through insurance and prevention solutions.
  2. Financial Advisor

    What Kind of Insurance Do RIAs Need?

    Advisors spend a lot of time discussing insurance with clients but they also need to consider their own coverage needs as small-business owners
  3. Insurance

    Do You Need Casualty Insurance?

    Find out how different types of coverages can protect you and which policy is right for you.
  4. Financial Advisor

    Group Term Life Insurance: What You Need to Know

    Is group term life insurance really a good deal? What you need to know about employer-sponsored group term life insurance coverage.
  5. Insurance

    Top Tips for Cheaper, Better Car Insurance

    Accident, theft, vandalism - make sure your coverage will protect you when you need it most.
  6. Insurance

    When Should You Get Supplemental Life Insurance?

    For individuals with larger families and responsibilities, supplemental life insurance may bridge the shortfall in coverage from term or whole-life policies.
  7. Insurance

    Homeowner's Insurance Guide: A Beginner's Overview

    Everything new homeowners need to know about insurance to protect their residence.
  8. Insurance

    What Is and Isn't Covered by Homeowners Insurance

    Understanding what your insurance covers can be confusing. Learn what almost all insurance policies have in common so you're prepared if disaster strikes.
  9. Retirement

    6 Benefits You're Required by Law to Offer Your Employees

    Learn about the benefits that a business must offer to employees, such as family and medical leave, as well as various forms of insurance coverage.
  10. Insurance

    For Top-Notch Insurance Coverage, Compare Quotes

    Find out how to use and compare policy options to get the best coverage at the best price.
Frequently Asked Questions
  1. What's the Best Way to Contact Warren Buffett?

    Learn how to contact Warren Buffett and what kinds of contact is most likely to receive a response from him or from his company, ...
  2. What is the Financial Services Sector?

    A diverse group of companies, beyond banks and credit unions, comprises the financial services sector.
  3. Who are Whole Foods' (WFM) main competitors?

    Whole Foods' main competitors are Sprouts Farmers Markets and Trader Joe's. However, the recent acquisition by Amazon my ...
  4. What caused the Stock Market Crash of 1929 that preceded the Great Depression?

    Find out what led to the stock market crash of 1929, which in turn led to the Great Depression. It sparked a nearly 90% loss ...
Trading Center