Liability insurance is an essential product for companies. Protect your company from legal action taken against you by clients and third parties. It is a type of insurance covers the legal responsibility of a company towards its employees and customers. pay the cost of damage or injury caused by the company’s products and/or services, including bodily, material and personal damage.
What does liability insurance do?
In addition to provide coverage for intentional crimes (such as assaults), civil liability insurance protects against claims of unexpected origin like accidents that happen unintentionally. For example, customers slipping on the store floor or employees who are injured because they did not receive proper training on the job.
Also protects your company from lawsuits, covers lawyers’ fees and other expenses associated with legal procedures. Besides, helps cover the cost of any compensation awarded to the plaintiff, either for medical bills or lost wages.
What type of insurance is liability insurance?
Liability insurance It is one of the most important business insurance. It is a type of insurance that takes care of provide coverage that primarily protects you from losses caused by legal liability.
Liability insurance may be referred to as third party liability insurance because it covers losses derived from an accident caused by a third party not related to you or your company.
The most common types of liability claims are car accidents and slip and fall injuries suffered on the property of another person. For example, the floor of a grocery store or a crack in the sidewalk.
How to get civil liability insurance?
Purchasing civil liability insurance is extremely simple. You can hire through an insurance company. But you can also get it via Internet.
To do it in a personalized way, contact an insurance company and ask them for a quote for the coverage you need. if you prefer to do it via the internet, many websites offer quotes from different providers in a matter of minutes. However, this option it is not the most recommendedgiven that, these estimates are not always accuratebecause they do not take into account all the relevant factors, in order to offer better coverage.
Is it mandatory for companies?
No. Not all companies are required to purchase liability insurance, This will depend on the field or economic activity to which they are dedicated. For example, among the professional activities that require this insurance on a mandatory basis, are healthFor example, professionals who provide health services privately. As well as, places where activities, recreational events or shows are offered, for example, cinemas, theaters, casinos, zoos, etc. Among many other activities.
What are the compulsory insurances for the self-employed?
Between the Mandatory insurance for self-employed we can mention:
Liability insurance: although not in all cases, it is considered mandatory. It will depend on the type of economic activity that is carried out.
Multi-risk insurance: an insurance that It covers the self-employed person and the place where they carry out their activity (local), against different types of accidents such as fire, damage to merchandise or theft.
Agreement insurance: with the one provides coverage to employeesgenerally, covers eventualities such as accidents, disability or death. In fact, this is one of the most important and most mandatory. Not having this insurance could lead to fines and penalties.
Vehicle insurance: with the one You must insure the vehicle or vehicles that are used in the development of the commercial activity. The most common being basic liability insurancewhich covers only the damage caused to third parties.
Obviously, some or most of these insurances are applicable to those self-employed, who work for the public, physically and own a vehicle or premises. Those Freelancers dedicated to teleworking, or whose business is online, are not required to take out these policies.
Last update: 02/17/2023
