Running a small business creates risks that may not be covered by a personal insurance policy. A customer can slip at your location, a contractor can damage property, or a client can claim that your work caused a financial loss. Business liability insurance is designed to help manage certain types of these risks.

General liability insurance

General liability insurance commonly addresses third-party bodily injury, property damage, and certain personal or advertising injury claims. For example, it may respond if a customer is injured at your shop and the business is legally responsible, subject to policy terms and exclusions.

Professional liability insurance

Businesses that provide advice or professional services may need professional liability coverage, sometimes called errors and omissions insurance. It can help with certain claims alleging that a mistake, failure, or professional service caused a client financial harm.

Product-related risks

If your business manufactures, sells, or distributes physical products, product liability exposure should be considered. The appropriate coverage depends on what you sell, where you sell it, and the potential consequences if a product causes injury or damage.

Coverage limits matter

A policy has limits that cap how much the insurer will pay for covered claims. Some policies include a limit for each occurrence and a separate total limit for the policy period. A business with high customer traffic or large contracts may need different limits than a small home-based operation.

Common exclusions

Liability insurance does not cover every business problem. Intentional acts, employee injuries, vehicle accidents, cyber incidents, professional errors, and certain contractual obligations may require separate coverage or may be excluded depending on the policy.

Questions to ask before buying

• What are the largest realistic claims my business could face?
• Do clients or landlords require specific limits?
• Are independent contractors covered?
• Do I need cyber, professional, product, or commercial auto coverage?
• What deductibles and exclusions apply?

Price is only one part of the decision. Compare the insurer's coverage wording, limits, exclusions, claims process, and optional endorsements. Keep the insurer informed when your services, revenue, locations, staff, or products change.

The goal of liability insurance is not to remove every business risk. It is to reduce the financial damage from specific covered events that could otherwise be difficult for a small business to absorb.