4 Types Of Liability Insurance

• Posted by Abhilash Chalmela April 29, 2022 - Filed in Other - #General Insurance  #public liability insurance  - 78 views

  Every business carries some risk. While there is hardly anything that you can do to avoid a problem, you have Insurance Policies to protect yourself from the damages caused by such eventualities. This is where Liability Insurance comes in handy. These plans give you financial coverage against the damages that a third-party incurs due to you, your property, or your business operations.

  To enjoy wholesome protection for your business against such liabilities, consider getting the following Liability Insurance Policies:

  Public Liability Insurance

  Also called Consumer General Liability Insurance Policy, it protects you against the accidental property or physical damage that a third-party suffers when they damage yours. Imagine you have a two-storeyed electronic shop. While shopping, a woman slips and sprains her ankle. She blames the slippery surface or inefficient steps for the incident.

  Consequently, she asks you for compensation. With Public Liability Insurance, ask the insurer to compensate the woman on your behalf. This saves money and resolves the issue quickly.

  Cybercrime Insurance Policy

  If you collect data of many users, buying Cybercrime Insurance should be your top priority. This is because the servers of such data-rich companies get hacked by scammers who wish to use this information illegally. In such cases, the victims blame the company for the incurred losses. However, if you have a Cybercrime Policy, such victims get compensated by your insurer without any hassle. 

  If you own an e-commerce store and a hacker breaches the firewall of your database and steals the banking information of your customers. The victims blame your company for the loss. If you own the Cybercrime Insurance Policy, ask your insurer to compensate the victims while fixing the breach. 

  Carrier Legal Liability Policy

  These policies compensate the insured if the goods get destroyed while in transit or the policyholder has custody of the goods. Suppose you are a chemical producing company that requires transportation of a particular explosive chemical to a paint manufacturing company in your neighbouring state. You buy Carrier Legal Liability cover as there are high chances of shipment catching fire.

  Even if your shipment catches fire during transit and gets destroyed, you need not bear any financial burden as your insurer compensates them.

  Product Liability Insurance

  This General Insurance provides financial protection against the damages that a third-party incurs due to offered product or service. If you own a cycle manufacturing company and a worker manufactures a faulty bike. The customer that buys it faces an accident and sues your company for the damages. With the Insurance Policy, ask your insurer to compensate the third-party on your behalf. 

  Check which of the following suits your budget and make a wise decision accordingly. You can buy any of them online too.