Business Liability Insurance
What Does Business Liability Insurance Mean?
Business liability insurance is a type of insurance that protects an enterprise and its owner from liability arising from its business operations. It basically covers the legal costs involved when someone files a formal lawsuit against the company for injury or damage to property.
Business liability insurance is also known as commercial liability insurance.
Insuranceopedia Explains Business Liability Insurance
Business liability insurance basically protects a company from the expenses of litigation. For business owners, any form of lawsuit may cost them major expenses that could put their company in a difficult financial situation. Therefore, many often purchase commercial liability insurance as financial protection from these expenses and pay for the legal defense and other associated costs, such as settling a claim with the injured person or damaged property owner. The three most common types are public liability, product liability, and professional liability.