What is the Difference Between Property and Liability Insurance?

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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 coverage 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 company 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 a 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.

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Other Key Considerations

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

  • Liquor Liability: Liquor Liability 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 resulting in financial loss to your clients.

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.

Business Insurance

Running a business is challenging enough without having to worry about lawsuits, employee injuries or property damage. Having the right insurance gives you the peace of mind to focus on what matters - running your business.

The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors. CoverWallet's intelligent assessment system will identify the insurance you need based on your specific business, get you a policy that fits your budget, and do it all in less time than you think.

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