Why do you need liability insurance?

Answer

Your state insurance department is your best resource for insurance-related questions and concerns. Find information on insurance companies and agents, rate quotes and comparisons, insurance buying tips, claims filing information and much more!

State Insurance Department websites:

http://www.naic.org/state_web_map.htm

Liability insurance is imperative for any business owner. If you own a car you have auto insurance; if you own a home you have homeowners insurance and any business owner needs liability insurance. This insurance is beneficial in so many ways. It covers business personal property. If you were to have a fire what would replace all of your equipment, computers, data, files etc? Business Owners Policies include this coverage. Many people who work from their home think that their homeowners policy will cover all of this...read the fine print! Very few carriers will cover in-home business property and/or liability. The liability aspect is the most important. You are making daily decisions that affect other people, a mistake could result in a costly lawsuit. Can you afford a lawyer to defend your business? Have you ever made a mistake on a job, contract or recommendation? Your business is liable for all of those, even honest mistakes. IF you are a sole proprietor all of your personal assets are at risk, home, autos, vacation properties etc. Contact your Insurance agent for a comprehensive review. Make sure that you are insured to all of your assets. If you are going to endure a loss make the insurance company pay for it. (If you work out your home there are some excellent alternatives that start around $250 annually.

First answer by Sdresh. Last edit by Sdresh. Contributor trust: 877 [recommend contributor]. Question popularity: 148 [recommend question]