What is the Difference Between Property and Liability Insurance?

Whether you need property or liability coverage, it's easy to get a quote. Enter your zip code to get started.

Prefer to speak with a CoverWallet consultant? Call (646) 844--9933 anytime

Property vs Liability Insurance

As a business owner, you had big goals when you launched. Most likely those goals were centered on serving your customers and business growth. You also opened the door to unknown risks and possible lawsuits. Having the right business insurance in place is the key to protecting your business, assets, and your hard work. The two most important types of insurance you need to purchase are commercial property and business liability.

What is Commercial Property Insurance?

Every business has tangible assets they need to do their job and deliver results. For some that includes a physical location, equipment, and parts to make a final product. For smaller businesses, it may only be a computer and office equipment. What would happen to your business tomorrow if these assets were suddenly gone?

Commercial property insurance protects your business from the loss of these assets due to fires, vandalism, theft, and equipment breakdown. The insurance pays to replace or rebuild property destroyed by a covered loss.

An important coverage to add to your property policy is loss of business income. This additional coverage pays for lost revenue if you have to close your doors to rebuild for a period of time. Bills don’t typically stop when this occurs, and the right property insurance makes sure you remain up to date on these expenses.

What is Business Liability Insurance?

Most business owners don’t wake up every day and plan the best ways to minimize risks they face. Every day businesses are held responsible for bodily injuries, property damage, and advertising injury. You can’t predict when a customer will trip outside your front door or that one of your employees will break a rare antique at a customer’s house. You also can’t predict when a competitor will take your advertising to heart and claim defamation of character.

But, you can buy liability insurance to protect your business in these circumstances.

Business liability, or general liability insurance, is a critical coverage every business needs to purchase to protect their finances, public image, and well-being in these instances. Basic policies include three types of coverage in addition to legal fees.

  • Medical payments when a third-party is injured as a result of your negligence.
  • Property replacement costs to replace damaged property that doesn’t belong to you.
  • Settlement expenses if you are found guilty of libel, slander, or advertising theft.

Are you ready to get down to business?

Great, just click get a quote and you’re off.

Other Key Considerations

There are additional areas of business liability concern you need to consider as well.

  • Liquor Liability. This is a necessary coverage for businesses that serve alcohol. It protects you from incidents and claims resulting from drinking too much alcohol. In some cases, the business has been held liable for actions that happen after a customer leaves their location and injures themselves or someone else.
  • Cyber Liability. Cyber liability is a hot topic with the number of breaches on the rise. This coverage protects you when sensitive customer information, including credit card numbers, email addresses, and social security numbers, is stolen by an outsider.
  • Professional Liability. Professional liability protects businesses from claims of negligence. These come in a variety of forms including upset customers who claim your product or services caused them harm or recalled products. Professional liability insurance helps with the costs associated with these claims.

Don’t risk your goals or dreams; make sure you have the right insurance in place to protect your business today. Buying commercial property and general liability insurance is the first step to getting it right.