What does a business liability policy cover?
Owning a business can be stressful, there are many things to take care of, the quality of your product or service, keeping the costs low, having a healthy work environment, positioning the brand, just to name a few… the risk of harm to a third party is not normally something we consider as a priority because it is just a possibility, right?
However, in case this not-so-rare possibility happens, Civil Liability Insurance will be the perfect solution for a financial imbalance. A business Civil Liability insurance is a policy that covers risks that involve a third party, for example, a supplier who enters an establishment can be hurt by something falling from a shelf, or maybe a water leak damages another property.
Here are the types of damages that a company can do:
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Property damage: damage caused to another property, like the water leak mentioned before, or if there is a fire or explosion that damages your neighbors.
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Damage to people: This type of damage is the most common, it’s important to be able to cover the physical damage caused by oversight or accident to a third party but also have coverage in case of a lawsuit, for example, the business in question has wet floors due to recent mopping, a client falls and is not satisfied by the company covering the physical damages, she wants to sue them for not having security measures to protect their clients, the Civil Liability also protects the company in this situation.
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Financial damage: In case the insured business causes financial damage to another establishment. For example, if the company has an explosion or a fire and it damages the businesses next to it to the point where they have to stop their activities.
Taking care of our community is as important as any other concern. We advise business owners to be careful and precautionary to avoid damaging a third party and facing legal problems.
We invite you to contact us if you have any questions. Don’t wait until an accident happens to protect your business, do it today. At AIR Insurance, we are ready to help you at any time and build a custom policy that fits your business needs with our “360º Insurance Guidance”. For more information, call +52 55 4444 6043 or send us an email at info@air.com.mx
