Can You Tell The Difference Between Property Insurance and Liability Insurance?

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Any business owner has to get several insurance policies. Though they might initially feel like extra expenses, they are actually mandatory if you want to keep disasters at bay. Whether you get them thinking of worse case scenarios or just because you need to, it is essential to keep your business protected at any given time.

There is a difference between contractor liability insurance and property insurance. In order to be always protected and to have that priceless peace of mind knowing that the insurance company got you covered no matter what, you need both of them. Getting cheap here can trigger big problems in the future. This is not something you should compromise.

Liability insurance refers to the costs that come up when some of your actions lead to lawsuits. Property insurance covers the belongings of your business and it includes replacements or repairs.

Key facts about liability insurance:

  • When you are liable, it means that you have to cover the loss when you cause damage to someone. That usually is about financial resources and, subsequently, lawsuits. Business Liability Insurance supports you in paying the legal expenses for the fees involved by lawsuits such as miscellaneous fees, lawyer fees, judgments or settlements.
  • When a firm fails to accomplish its professional responsibilities towards another, it can be sued. This can mean years of trials, stress and huge costs that can get to hundreds of thousands of dollars for big companies.
  • Liability insurance comes in many forms, which provide various policies. These are the most important ones: General Liability Insurance (injuries and property damage), Employment Practices Liability Insurance (breaches of contract of discrimination), Errors and Omissions Insurance (carelessness) and Workers' Compensation Insurance (illnesses and injuries that occurred in the workplace).
  • About Property Insurance:
  • Property Insurance protects against material damage or loss related to any equipment, office or property that your business might own, including meteorological phenomenon or thefts. It protects you even against vandalism.
  • It is absolutely compulsory if your business owns expensive equipment that can easily get damaged by unpleasant events. It will help you not only get new one, but repair the building, clean it and replace furniture items if necessary.
  • The lack of Property Insurance made many businesses get closed as they couldn't cover expenses required by bills.

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