A good liability insurance generates as a shield against possible lawsuits against your business, because you can do everything possible to make your customers feel satisfied while maintaining a good reputation.
However, that same reputation can be affected due to injuries that your clients may suffer within your business, the building of your company can also suffer an incident and it is when this type of insurance acts covering the legal expenses of the lawsuit that your client against you and contracts your business, but faced with this need you ask yourself …
What type of liability insurance is right for me?
A liability insurance Low cost but with the efficiency that a small business needs is the BOP, built into the business owners policy, which is a combination of liability insurance and property insurance.
BOP coverage
The insurance company pays the pipes for bodily injury, personal damage, property damage and advertising damage as part of everything that according to the law you would be obliged to pay and will do so up to the limit that is set in the policy and in accordance with your deductible.
You get bodily injury coverage, that is, it covers you in the event that you cause illness, death or injury including mental or emotional injuries derived from post-traumatic stress.
You also get coverage for advertising and personal injuries such as defamation, violation of privacy rights, copyright, eviction and other illegal issues.
With a BOP coverage, the sole proprietor is covered as well as the partners indicated in the declaration policy and also the spouses of the partners or sole proprietors, that is, if the company has directors and officers, all are covered as are the workers volunteers and employees.
Liability coverage
In short the liability insurance covers financial liabilities that can be caused within the business by accident such as the bodily injury that a customer may suffer from slipping.
Even if that accident causes the death of a client, the insurance pays the expenses, from the hospital bill, the rehabilitation of that client, the infirmary, the loss of income, the funeral expenses and everything that has to do with cats to cause of accident or death up to the limit of your choice.
If you work on someone else’s house or property and cause damage, your insurance pays the costs of repairing or replacing what you have damaged including pets, streetlights, vehicles and also up to the limit you choose.
If you are sued, the insurance pays the legal costs and therefore you do not worry about high expenses in the case of a lawsuit that can always arise in your commercial activities.
Vehicle liability insurance
If you drive a vehicle, you need liability insurance, as it is required by law. When you buy the policy, you choose the limits that will determine the maximum amount that your insurance company will pay when you need coverage.
In some states, spending limits of 2 million are offered, but they are described as single combined or divided limits.
The Split Limits of Vehicle Liability Insurance
- They pay a maximum for bodily injury and per person.
- They pay a maximum for bodily injury covering everyone in the accident.
- They pay a maximum for property damage covering everyone in the accident.
For example, if you choose a division limit of 20,000 / 40,000 / 15,000, 20 thousand is the maximum that the insurance company will pay to the person who was injured in the accident, 40 thousand is the maximum that your insurance company will pay covering all the people who were injured in the accident and 15 thousand is the most your insurance company will pay for the property that was damaged in the accident.
CSL is the single combined limit. A number describes the limits for property damage and bodily injury insurance. There is no limit per person but a total maximum to pay for property damage and personal injuries caused in a single accident.
For example, if your business suffers from an accident and you chose a combined single limit of 2 million, the insurance company will pay up to 2 million for all expenses related to the property that caused the accident, and medical bills and everything. that is related to injuries.
For example, if you choose a combined single limit of $ 500,000 for liability insurance, in a car accident, the insurance company will pay the medical bill and everything related to the accident and bodily injury up to $ 250,000 and for damages to the property for 250 thousand for the replacement of the damages of the car.
The bodily injury insurance is responsible for the payment of the future medical that correspond to the people injured by your vehicle, while the property damage insurance is responsible for the payment of repair or replacement of parts of the car damaged by your vehicle.
Personal injury insurance covers the limit of your policy either for injuries or death caused by you if you are the policy holder or by drivers who have been responsible for the accident and who are covered by the policy. Terms can vary, but coverage typically pays up to the policy limit for medical expenses, funeral expenses, and legal defense against a lawsuit.
As for the limits, they are considered per accident and per person, for example 30000/60000 means that 30000 is the maximum payment per person and 60000 is the maximum payment for all the people who have been injured in the accident. It does not cover your injuries but injuries to third parties caused under your responsibility. You need personal injury protection coverage or medical payments coverage for your injuries to be covered.