How Business Insurance and Liability Insurance Work Together – Zupnick Associates

Understanding business insurance and liability insurance and how they work together can help you cover your business with plans that provide optimal:

  • Coverage

  • Risk reduction

  • Overall cost

Insurance brokers offer big businesses both business insurance and liability insurance. Here’s what you should understand to decide which works best for a company like yours.

What Are Business Insurance and Liability Insurance?

Understanding what defines big business insurance and liability insurance is the first step when deciding what might be best for your company.  Regardless of how carefully and cleanly you run your business, it could face these claims.

Keep in mind that not all claims may be valid. Even so, defending your business from them can devastate your corporate budget if it does not cover them.

General Liability Insurance for Big Businesses

General liability insurance protects large business owners from the most common torts, or wrongdoings. It keeps you and your business safe from some of the major expenses resulting from lawsuits by people who do not work for your business. It’s protection from third parties:

  • bodily injury on company premises

  • property damage resulting from your business’s operations

  • personal injuries related to your advertising or marketing

    • libel

    • copyright infringement

    • slander

    • use of personal or brand images without permission

General liability insurance protects you from these claims by compensating your business for

  • Court costs

  • Attorneys’ fees

  • Settlements

  • Judgments

Of course, different liability plans include distinct coverage of each of these types of claims. It all depends upon the specific limits of your policy.

By talking with an insurance broker, you can determine what areas require the most coverage. Agents understand how to round out company policies to best suit individual niches and situations.

Business Owner Policies (BOP)

The big business owner policy provides additional protection above and beyond that covered by general liability insurance. Insurance brokers build BOPs by combining distinct policies and bundling them.

Skilled insurance brokers mix and match, taking advantage of existing insurance network relationships, deals, and trust. They can provide you the best deal tailored for your specific business.

A qualified broker will know how to balance out your plans whether you own an international shipping company or a brick-and-mortar B2C retail franchise. BOP coverage includes general liability insurance, as described above. In addition, it includes:

  • Property insurance covers your insured business assets.

  • Coverage for lost, stolen, or damaged property when fire or windstorms strike.

  • Business interruptions that keep your company from going under due to halted business operations and lost income.

How Do Business Insurance and Liability Insurance Work Together?

Keep in mind that both general liability insurance and business insurance protect your enterprise from basic liability. While general liability takes care of claims on your premises, property damage or claims coming from advertising and marketing issues can leave you holding some pretty heavy debt. Imagine an employee forklift accident or a stolen server cutting your employees and customers off from networked database functions.

Because the business insurance policy includes general liability insurance, it covers the same claims, but it also covers many other issues: premises liability, property damage liability, and advertising liability claims. If you purchase a business owner’s policy, you do not need additional general liability insurance. It’s part of the deal (see below).

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Now that you understand how business insurance and liability insurance work together to ensure adequate coverage of your big business. Companies cannot afford to have inadequate coverage for their businesses, even when they’re low-risk.

Understanding about the options for your business gives you the knowledge to help you ask a well-informed insurance brokerage about the best possible coverage for your particular business. Once you see how business insurance and liability insurance work together and get the best coverage for your business, you’re on your way to a profitable future with minimal risks.

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