Here are the situations when Business Liability Insurance is compulsory:
Obtaining big clients
It is a joy to finally land the clients that you have been looking for all along. But that comes with extra responsibilities and worries as these clients don't mess around.
Their company grew from a small business like yours to an important one and they won't tolerate mistakes. Most will require a Errors & Omissions Insurance and will want to see the relevant documents such as certificates of liability insurance.
The online environment might seem to be a huge source of free stuffs, but copyrighting rules can get you into serious trouble. You need a General Liability Insurance policy, especially if you don't know much about copyrights.
If you have an online shop where people can pay for their goods through digital payments, you will be responsible with keeping highly sensitive data safe. So Cyber Liability Insurance will come in handy. Also, you are obliged to notify the customers if there is any security breach due to hackers.
Driving for work
Personal auto insurances don't cover all the costs when you are driving in other states. Commercial Auto Insurance is the solution to get the extra coverage you need. If your employees drive for business too, you have the option to add Hired & Non-Owned Auto Insurance to stay safe at any given time against lawsuits concerning accidents or property damage.
Hiring new employees
You might work very hard to make your business successful. But you rely on your employees too. That's why Workers' Compensation Insurance and Professional Liability Insurance are mandatory.
The first one reimburses medical bills, disability or death benefits, as well as wages lost due to work-related accidents. Make sure you check Workers' Compensation Laws by State as the rules slightly differ from one state to another.
A Professional Liability policy refers to lawsuits that are caused by employees such as poor service or various intentional or even unintentional mistakes. The employer can be held responsible for the employee's actions and you should be covered.