Key Scenarios to Consider
Every business is different which means every business faces unique risks. Take a look at a few policies and how third party liability coverage can protect you.
Last year, businesses reported more than 400 data breaches that compromised more than 5.5 million customer records. Today’s technology-savvy business environment makes it mandatory for the majority of companies to do business online. Even if you don’t, you still house sensitive client information. What happens if an employee steals client credit card information or a hacker breaks into your electronic files?
If that happens, you will be face to face with a lot of angry customers, state-mandated reporting requirements, and potential financial obligations. In these scenarios, cyber third-party liability insurance can help to cover your financial obligations, so you aren’t forced to close your doors overnight.
Errors & Omissions
As much as you strive to be perfect, it’s not possible. Just like accidents happen, so do errors in your business. The good news is businesses can purchase errors and omissions, or E&O insurance, to pay for damages that result from incidents.
For example, if you are a plumber who is hired to replace the pipes in an older home, you do the job to the best of your ability. A few weeks later, the customer turns the water on, and one of the pipes burst in their basement causing a flood. After review, it’s determined that you didn’t have the right size pipes in place (error) and you are responsible for the damage to their home. The third party coverage on an E&O policy would pay the damages, so you don’t have to.
When businesses have a vehicle, they face significant driving risks. If an accident occurs and a third-party is injured, the business can be held liable for all expenses associated with the accident. Expenses include property damage to their vehicle, medical expenses, loss of wages, and pain and suffering depending on the severity.
If your business has a vehicle exclusively for business use, you need to purchase commercial auto insurance. Commercial or business auto insurance includes third-party liability insurance to protect your business from these out of pocket expenses.