What is Commercial Liability Insurance?

In our modern world, more and more individuals are turning toward legal action if they get upset with a business. While you may only hear about lawsuits against large companies on the news, many smaller lawsuits targeting various businesses occur every year. Just one of these lawsuits could cost tens or hundreds of thousands of dollars, enough to rock the financial stability of your business. What can you do to protect your livelihood?

Commercial liability insurance is designed to cover the expenses that businesses are legally liable for paying, such as medical expenses, court-mandated settlements and their own legal defense fees. This coverage doesn't erect a force field of protection against oncoming lawsuits. Anyone can still file a lawsuit, whether grounded or frivolous. Rather, commercial liability insurance helps cover the associated expenses, which may be the only thing that can keep your business from closing down permanently following litigation.

What might cause a liability lawsuit in the first place? Here are a few examples:

A customer slips in a puddle in your store and breaks his or her ankle during the fall
A product you sold injures a customer
A visitor trips down a broken stair riser in your building because there was no warning sign
An employee accidentally breaks a customer's laptop

Remember, every business has its own unique liability needs. A quiet office workplace isn't as risky as a construction worksite, for instance. Talk to your independent agent about the right amount of coverage for your business.

Don't forget to ask about property coverage as well. Call First Insurance Group at (502) 348-5921 for more information on Lexington business insurance.

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