Business liability insurance is any type of commercial insurance that defends against accusations that your business caused damage, injury, or loss. It's recommended for all small businesses because of the high cost of lawsuits.
Companies that interact with the public in any way are at risk of lawsuits. This includes working with clients, customers, or even delivery people.
For example, a client could trip over a loose power cord in your office and sue your company over the injury. Liability insurance protects your business from lawsuits over:
There's no single policy that covers all of the above risks. Small businesses can choose the liability policies that make sense for their business's unique risks.
We recommend these three liability policies for most tech companies. Other policies apply to businesses with specific risks.
If your company is active on social media or invites clients to its office, then general liability insurance is a must-have policy. This policy protects against the most common third-party lawsuits. Examples include:
Because accidents can be expensive, your clients or commercial landlord might request a certificate of insurance proving that you carry this policy.
Every tech company should consider errors and omissions insurance (E&O) to defend against the risks of working with clients. If a client accuses your company of late, incomplete, or erroneous work, E&O can cover your legal expenses.
Companies that conduct business online are open to risk. Cyber liability insurance helps pay for the aftermath of a data breach or cyberattack at your business.
This policy can also cover legal expenses if a client affected by a breach blames your company for failing to prevent it.
Tech businesses that hire employees or own company vehicles may need additional coverage. The following liability policies address specific risks:
Commercial auto insurance protects vehicles owned by your tech business.
Hired and non-owned auto insurance provides liability protection for vehicles used but not owned by your business, such as a personal or rented vehicle used for work errands.
Commercial umbrella / excess liability insurance boosts the protection of your current liability policies.