As a business owner, you have a lot of responsibility. If you made a professional error, or cause property damage or injury to another person by accident, you will be held liable for your actions. The other party may request financial compensation which may be difficult or impossible for you to pay. In this case, the business insurance policy can be very valuable. Take a closer look at the four main types of cover available today.
Type of liability insurance coverage is designed to cover the finished goods. It is suitable for the manufacture of business and for the retail business selling physical goods. If the product you received injury or property damage them accidentally due to defects in the product or in the instructions for use, the policy will provide compensation to these people.
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This is the equivalent of product liability coverage but for business services. It is called professional liability insurance or indemnity. This includes providers of services and professional advice to negligence, errors or omissions. Here is an example of how it works.
If you are a lawyer and your clients experience a financial loss because you legal advice, cover compensation will kick in to compensate. Traditionally, this type of cover has been used by lawyers, accountants, brokers, architects, designers and advertisers.
Public Liability Cover
This type of insurance is considered obligatory for all businesses including home based. It is advisable for an individual such as homeowners and pet owners. It is designed to protect you financially in the case of members of the public incurs damage to property or injuries and you find responsible for this.