A business can protect itself by purchasing a commercial liability insurance, which offers the following benefits:

  1. Bodily injury liability: It protects your business if injuries are caused to the other person due to your business operation.
  2. Property damage liability: It protects your business if damages occur to the property of others.
  3. Personal injury liability: It safeguards you for an offense like wrongful entry, false arrest, and slander.
  4. 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.
  5. Contractual and tenant’s liability: It safeguards your rented business space against liabilities which may arise if you enter a lease contract.
  6. Lawsuits, investigations, and settlements: If damages are filed against you, or you are sued, the insurance policy covers the investigation and attorney expenses, medical expenses in case of injury.
  7. 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 that meets your company’s varied requirements.

Case Study

For the last six years, N.S Sports Co. has carved a niche for itself in the sports market in a short span of 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, the company was sued when one of the bats they had sold broken and injured a child. Luckily, the company had a commercial liability insurance policy that offered the 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 saved money of a restaurant owner. A family restaurant in Pune was sued when a customer slipped on a wet floor of the freshly mopped dining space. The customer’s spinal cord got hurt due to the fall, and he sued the restaurant for medical costs, lost wages, and other expenditure. 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.

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