Any business that throws events should have some types of liability insurance for events. Everyone in a society has some responsibility or the other in executing his or her actions that do not injure other people. The same rule hold good for business establishments. Let us see what are the liabilities required for various types of people and how they can be availed in the forthcoming paragraphs.
Why Liability Insurance?
While running a business, you may execute good liability risk management that can reduce the chances of your business being sued. But, this wisdom will not eliminate the risk completely. You or your employee may commit a mistake that causes injuries to others or damage other’s property. Your actions and mistakes may harm the reputation of someone or some people may feel that you have interfered into their privacy. Your mistakes might have troubled your clients, competitor or a member of the public.
In such cases, you are liable to be sued for damages or injuries and value of the property damaged. Depending on the degree of harm done or the value of the property damaged you will have to face a lawsuit which will bring you to the platform. Whether you are responsible for the wrongdoings or not, a determined plaintiff can drag you to the court for a long time. Then how will you run your business? Therefore, if you carry a business liability insurance in Arizona, then you can be free as these cases will be dealt with by the insurer.
Liability Insurance for Businesses:
In respect of small businesses, the most efficient and least expensive way to get liability insurance is to buy a business owners policy. This may also be called small business liability insurance and this insurance is a combination of property and liability insurance in one contract. As an alternative, a business can also buy a commercial general insurance coverage.
Your general liability insurance provider will pay for the damages for which you are held legally responsible as a result of bodily injury or property damage or personal and advertising injury to the limits of your policy and subject to your deductibles. The insurance companies will not cover punitive damages and there may be some exceptions even to this type of damage. Bodily injury means external or internal injuries, sickness, diseases and death. The injuries can also be emotional or mental such as post traumatic stress syndrome or humiliation.
If the affected people are immediately paid the medical expenses, they incur, they may not file a lawsuit against you relieving you from attending the courts for case proceedings.
Business owners policy coverage insures a sole proprietor or the partners in the business. But they are covered with respect to their duties and responsibilities concerned with the business alone. The spouses of the sole proprietor and partners are also covered.
The Insurer’s Rights and Responsibilities:
- The insurer can investigate any event that led to a liability claim.
- It is the duty of the insurer to defend the insured in a lawsuit seeking damages for the covered type of damage under the purview of the policy.
- At its discretion, the insurer can settle any lawsuit or claim.
- The insurer’s responsibility will come to an end when the applicable policy limits are covered and are used up in the payment of judgements, medical expenses and settlements.
Professional Liability Insurance:
If your business or profession demands some specialised knowledge and you provide service or counselling based on your knowledge, then you need a professional liability insurance to defend yourself, if your counselling goes wrong in some cases.
Professional liability insurance is offered by all leading insurance companies in Arizona for accountants, auditors, attorneys, architects, engineers, management and business consultants, personal training providers, technology companies and the like.
There are many chances that these professionals are held liable for the financial loss or damages incurred by the customers as a result of wrong advice or negligence or failure to perform services on the part of professionals. At this stage professional liability insurance will come to your rescue and save you from any financial loss.
For all the types of liability insurances explained above and to be explained later in the same article, you have to get liability insurance quote Arizona from the prospective insurance companies. This would enable you to compare different quotes and come to a favourable decision.
Public Liability Insurance:
Public liability insurance is an important topic to understand. This insurance covers third party situations that may arise from the incidents with the insured person, but the insurer may be unaware of these situations. Such situations can happen on many occasions and it is the duty of the insurer to defend and indemnify the client.
The public liability insurance is a big problem for businesses such as restaurants, malls, shopping centres, retail stores and other places where public traffic is high. Getting injuries is common for the people at these places and responsibility lies with the business owners. Small businesses are the hardest hit when it comes to availing of public liability insurance as the cost of premium is very high. Even though, you can get public liability insurance quote from the insurance companies, you must be careful in selecting the coverages and the cost of premiums.
General Liability Insurance:
Arizona general liability insurance is an excellent way of protecting your business assets against lawsuits filed by the affected people for the damages caused by you or your employees. Your business is a great investment and you need to protect not only you but also your employees. This insurance covers your business when you have inflicted personal or property damage to a customer or his or her property. There are several types of policies under this and the general liability insurance cost varies according to the coverages needed by the business organisations.
Conclusion: Insurance types vary according to the business nature, demands and coverages. You have to predetermine the coverages, you need, as it depends upon the exposures and risks, your business face. However, do not try to run your business without appropriate insurance coverage as it will ruin your business. Please be alert and do the needful to safeguard your business.