Small business liability insurance is a type of commercial insurance available for certain businesses. Generally speaking, liability insurance is intended to provide financial coverage for businesses in instances where they may be held liable for injuries or losses caused to customers or visitors to their premises.

What Does Liability Insurance Cover?

Most businesses carry some type of liability insurance. However, small business liability insurance may focus on certain liability issues that are specific to smaller operations. These may include:

  • Floor, carpet, or wooden deck hazards
  • Wet floor/spill claims, such as slip and fall claims
  • Claims involving stairs, elevators, or ladders
  • Lighting claims, as poor or inadequate lighting can often lead to various hazards and even robberies, including outside near parking lots
  • Walkways and parking lot hazards, such as debris and broken glass
  • Other violations such as disabled person/handicap access

What Is Not Covered by Liability Insurance?

Liability insurance often does cover certain acts or situations, like:

  • Harm resulting from intentional acts of business owners or employees
  • Instances where the business knowingly violated business or ethics standards, including food safety hazard standards
  • Certain losses where the business owner knew about the concerns and did nothing to prevent or remedy the situation

Also, most insurance companies will provide liability coverage up to a certain dollar amount. Within this range, the insurance company may pay for costs including court fees, damages, and other amounts. However, beyond this limit, the business might begin to be responsible for the damages or costs involved.

Do I Need a Lawyer for Help With Small Business Liability?

Liability laws can often involve highly technical legal concepts. You may wish to hire a business lawyer if you need assistance with any small business issues. Your attorney can help you negotiate insurance terms, and can provide you with guidance during the process. If you need to file a legal claim, your attorney can provide you with legal representation during the lawsuit.