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Common Liability Exposures for Businesses

Common Liability Exposures for Businesses
Are you confident that your business has the coverage to protect all you’ve worked so hard to build?

Here are the basics of common business liability insurance exposures and coverage.

Premises and Operations Liability

This covers bodily injury or property damage to third parties when the losses originate from the business location.

Product Liability

When a defective product results in injury or damage, the business, as the creator or seller of the product, is covered under product liability.

Completed Operations Liability

A completed operations exposure arises out of work performed by a business when the result is defective and causes injury or damage.

Personal Injury Liability

This liability commonly derives from an action that may have caused a specific but unintended violation or infringement of another entity’s rights. Personal injury claims do not deal with allegations of physical harm, but rather, with such matters as: 

  • Wrongful arrest 
  • Wrongful eviction or entry by the landlord 
  • Malicious prosecution 
  • Libel and slander 
  • Unlawful interference with one’s property 
  • Actions causing severe mental and emotional distress
Liability for Property in the Businesses Care, Custody or Control

There are two types of property related to this liability 

  1. Real Property: A business that operates out of a rented premises faces the potential for liability for loss to the building and any fixed equipment. 
  2. Personal Property: A bailee for hire has temporary custody of the personal property of another. The bailee for hire is expected to have the same degree of care as would be taken by a diligent owner of such goods, and if loss or damage occurs, the bailee for hire must prove they were not negligent in causing the loss.

Employer’s Liability

An employer may face liability for actions, wrongful acts of their employees, or bodily injuries suffered by employees in the course of their employment. Whether unauthorized or unintentional, the business may be liable for the conduct of its employees.

Contingent Liability

Contingent liability arises when a business owner is held liable for the bodily injury, property damage or personal injury that is caused by another party with whom the business has contractual relations. Although a business may not be directly liable, it may be sued as a named defendant in legal proceedings, thereby facing expensive legal costs.

Contractual Liability 

Contractual liability refers to the liability of others assumed by the insured under contract. Liability exposure increases when businesses are entered in contracts with third parties.

Cyber Liability

Most organizations share fundamental and potentially costly elements of cyber risks – websites, social media, internal networks, email, databases, applications, employees, mobile devices, suppliers and other third parties. Standard Commercial General Liability Policies exclude many of these exposures.

Professional Liability/Errors and Omissions

This coverage is designed specifically for professionals who give advice, counselling or administer health care, which is not covered in a general commercial liability policy. When you are confident that your business has the necessary insurance in place, you can focus on what matters most: your business’s health and wealth!

Please reach out to us to ensure you have the coverage you need: 1-800-679-2640, or begin your online quote by clicking here.