Business Liability Insurance: Why is it Important?

Business Liability Insurance is important because if a claim or a law suit is brought against a business, even if the business did nothing wrong, the cost of defense could be crippling. The policy would cover not only the indemnity of the claim but also the cost of paying the lawyer or law firm to defend the claim.

Not all lawsuits are covered by insurance. For example, breach of contract is rarely covered by insurance; however, if there are multiple claims made, including breach of contract, the insurance company is required to defend all the claims and not just the covered claims. There may be a later dispute with the insurance company about which claim the insurance company has to indemnify, and that is something that I help clients with all the time.