A business can protect itself by purchasing a commercial liability insurance plan, which offers the following benefits:
- Bodily injury liability: It protects your business if injuries are caused to the other person due to your business operation.
- Property damage liability: It protects your business if damages occur to the property of others.
- Personal injury liability: It safeguards you from an offense like wrongful entry, false arrest, and slander.
- Advertising injury liability: It covers your legal liability for various offenses which may arise if your company’s marketing division violates someone’s copyright rules.
- Contractual and tenant’s liability: It safeguards your rented business space against liabilities that may arise if you enter a lease contract.
- Lawsuits, investigations, and settlements: If damages are filed against you, or you are sued, the insurance policy covers the investigation and attorney expenses, and medical expenses in case of injury.
- Financial loss coverage: A commercial liability insurance policy ensures that you can move forward without incurring unnecessary monetary losses. The policy not only protects you against unexpected losses but also ensures a safe future for your business.
In order to ensure that accidents, lawsuits, or other issues do not drain the financial assets of your business, it is necessary to buy a commercial liability insurance plan. It meets your company’s varied requirements.
Case Study: Commercial Liability Insurance Plan
For the last six years, N.S Sports Co. carved a niche in the sports market in a short time. Known for its durable sports equipment9, the company has a long list of clients that includes sports associations, coaching institutes, and education institutes. In 2015, the company received an order of 50 cricket kits from a cricket coaching institute. N.S Sports Co. successfully delivered the order and that too before time. However, sued the company when one of the bats they sold broke and injured a child. Luckily, the company had a commercial liability insurance policy that offered bodily injury liability coverage. When the case reached the court, the insurance policy covered legal expenses and paid compensation to the cricket coaching institute.
In the second instance, the commercial general liability insurance plan saved money for a restaurant owner. A family restaurant sued in Pune when a customer slipped on a wet floor of the freshly mopped dining space. Hurting the customer’s spinal cord due to the fall, he sued the restaurant for medical costs and other expenditures. In this case, as the restaurant owner had bought the commercial general liability insurance, it covered the cost of the lawsuit and the final judgment or settlement in the case.