What Does Liability Insurance Cover?

Posted on April 27, 2020 by admin
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It is crucial for businesses to be aware of their risk exposures and that their standard insurance policies only cover certain liabilities. Rooney insurance can assess your business for all of your industry’s specific risks and advise on exactly what is needed to ensure full protection. An agent can help you to determine endorsements that are right for your type of business.

General Liability Insurance Explained

A general liability insurance policy typically can cover costs of your legal defense and will pay all damages on your behalf if you are found liable—up to the policy limits. This policy is an important foundational coverage as it will assist you in the negative impact that a lawsuit can have on your business.

Standard coverage includes:

Bodily Injury and Property Damage Liability

Provides protection against losses from the legal liability of insureds for bodily injury or property damage to others resulting from non-professional negligent acts or for liability arising out of their premises or business operations. Mental injuries and emotional distress may also be considered bodily injuries (even in the absence of physical harm).

Workers compensation, employment practices liability and pollution liability are typically excluded from this coverage. In addition, liquor liability and professional liability may also be excluded and should be purchased separately.

Personal and Advertising Injury

Covers liability arising out of certain offenses, such as:

  • Libel

  • Slander

  • False arrest

  • Infringing on another’s copyright

  • Malicious prosecution

  • Use of another’s advertising idea

  • Wrongful eviction, entry or invasion of privacy

Medical Payments

There is limited coverage for medical payments of non-employee injuries caused by an accident that occurs on the insured’s premises or when exposed to business operations. This offers quick settlement of smaller medical claims without litigation. It will cover necessary and reasonable medical, surgical, ambulance, hospital, professional nursing and funeral expenses for serious or fatal accidents that have occured at the insured’s premises or arose from business operations.

Who Needs Professional Liability Insurance?

Professional liability insurance is needed for many businesses and some may even be required to carry it to be in business, or to follow a professional contract. This coverage can help protect you and your business from the time consuming work and costly expenses that come with a legal defense after a negligent claim or a client sues. Those providing professional advice or services to clients are at higher risk and may greatly benefit from the protection offered by this coverage.

Some examples of professions that often benefit from professional liability protection:

  • Lawyers

  • Consultants

  • Tax preparers

  • Home inspectors

  • Technology professionals

  • Real estate professionals

Additional Liability Coverages to Consider

Depending on your type of business, you may want to consider additional liability coverage that is not part of standard liability insurance. Speak with a Rooney  insurance professional regarding the types of coverages that you may need. The key types of insurance to consider include:

Directors and Officers Liability

Protects past, present and future directors and officers of companies from damages resulting from alleged or actual wrongful acts they may have committed in their positions.

Liquor Liability

Protects your business against loss or damages claimed as a result of a patron of your business becoming intoxicated and injuring his or herself, or others.

Pollution Liability

Provides industrial, commercial and agricultural property owners, managers and developers with a broad range of pollution liability protection for gradual, sudden and accidental, first-party and third-party environmental liabilities.

This coverage also protects assets from unforeseen environmental exposures  that could have substantial impact on earnings and protects against unforeseen pollution hazards that could cause bodily injury, property damage or pollution clean-up costs.

About Rooney Insurance Agency

Rooney Insurance Agency, established in Tulsa, Oklahoma in 1960, has provided customized business and personal insurance and employee benefits solutions to individuals and businesses in the state of Oklahoma and throughout the United States. We work to ensure that each client’s insurance coverage fits their specific needs, addresses their key risks, and protects their valuable assets. For more information on how we can help you today, contact us at (918) 582-0565.