When businesses in Maine do not have liability insurance, they run the risk of facing financial ruin in the event that someone files a lawsuit.
On the other hand, when your Maine business has liability insurance in place, the policy can cover any direct financial liabilities that are incurred and pay for legal defense costs.
But there are many other reasons why businesses in the Pine Tree State need liability insurance.
Types of Liability Insurance and Why You Need Them
Liability insurance is an umbrella term for a variety of insurance policies that can protect businesses from a multitude of risks.
The precise type of policies that you should consider getting will depend on your exact type of business. For instance, if you run a design agency, you might want to consider taking out a specific type of liability insurance that covers copyright infringement and misleading advertising.
Most companies in Maine take out the three most common forms of liability insurance, at the very least. The most common types of business liability insurance are general liability insurance, commercial property insurance, and professional liability insurance.
General Liability Insurance
General liability insurance protects against property damage, bodily harm to others, and personal injuries.
For instance, if someone slips and falls on your business premises, he or she could sue your business. If you have general liability insurance, your policy will cover any costs that are incurred.
While injured parties can hire a team such as Wieand Law Firm’s team of lawyers to gain compensation, even if you have general liability insurance, it is a good idea to get legal representation yourself in case the lawsuit ends up going to court.
But as long as you have general liability insurance in place, you can avoid costly settlements that you have to pay out-of-pocket.
Commercial Property Insurance
The same reasons for getting general liability insurance apply to other types of business liability insurance.
One type of liability insurance your Maine business should definitely consider is commercial property insurance, which protects against damage to your property, regardless of whether you own or rent your premises.
Things like accidental fires and intentional acts of vandalism can prove to be very expensive if you do not have commercial property insurance in place.
Professional Liability Insurance
Another must-have type of liability insurance for many businesses in Maine is professional liability insurance.
By having this form of liability insurance, you protect your business against things like errors you make concerning the products or services you sell and data breaches due to cyberattacks.
Speaking of cyberattacks, find out how private network usage can help to boost your cybersecurity.
What costs does business liability insurance cover?
When you take out a liability insurance policy, your business will be covered for things like the costs that are incurred by a customer who is injured on your property and an employee who is injured on the job.
Furthermore, business liability insurance can cover the cost of your legal defense and pay for any settlement that is reached. Your policy could pay for things like compensatory damages, punitive damages, and non-monetary losses that are suffered by the injured party.
When you have commercial property insurance, you will not have to cover costs out-of-pocket for damage caused by things like floods, fire, and vandalism.
Even with solid health and safety practices in place, customers and employees could be involved in accidents that cause injuries on your business premises.
Things like vandalism and natural disasters can happen at any time and cause damage to your property. And errors in products or services and data breaches can occur even if you take preventive measures.
All in all, that means you need liability insurance policies in place. You will then be protected and not have to face potential huge expenses that could lead to your business going under.