Liability Insurance Coverage

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What Is Covered Under Liability Insurance?

liability insurance coverage Many small businesses need liability insurance to help them run a successful company. Liability insurance coverage protects you from claims that come up during normal business operations. This includes claims of:
  • Property damage
  • Bodily injury
  • Employee injuries and illnesses
  • Mistakes in professional services
Liability Insurance covers property damage or injuries from an accident where you or your business are at fault. Without this coverage, business owners would have to pay for damages out of pocket. And since claims can get expensive, your small business may not have the resources to do so.
We can help you get the right coverage for your business. Whether you’re asking “what is liability insurance coverage” or need to know what types of coverage you should have, our specialists can help.

Types of Liability Insurance Coverage

General Liability Insurance

A General liability insurance policy helps cover claims against your business, such as:
  • Bodily injury
  • Property damage
  • Reputational harm
  • Advertising injury
If one of your clients trips and falls while visiting your office, they can sue your business for their medical expenses, plus pain and suffering. With this coverage, your insurance can help pay for their treatment costs. Without it, you’d have to cover the costs out of pocket.

Professional Liability Insurance

what is liability insurance coverage Of course you want to run your business perfectly, but accidents can happen. If your client is injured and loses money, they can sue your business. That’s when professional liability insurance coverage can help.
You may want to get this coverage if you offer professional services to customers. In some states, certain businesses may be required by law to carry this type of insurance. Check with your local laws to see if you need it.

Workers’ Compensation Insurance

Workers’ compensation insurance is required by law for employers in most states. This coverage gives benefits to an employee with a work-related injury or illness. It can help:
  • Cover medical bills
  • Pay for ongoing care
  • Replace lost wages

Liability Car Insurance

liability coverage Commercial auto liability insurance protects you and your employees on the road if you’re driving for business. The amount of auto liability coverage you need can vary by state. Your commercial auto policy will likely include the minimum coverage for bodily injury liability and property damage coverage. This helps pay claims if you or an employee are at fault for a crash that damaged someone’s property or left someone injured in an accident.
You can also add optional auto liability coverages, like comprehensive coverage, or in some states, personal injury protection (PIP). And a higher liability limit can enhance your protection.

Cyber Liability Insurance

Cyberattacks and data breaches are on the rise. Any sensitive or confidential information that business owners store could be at risk. Data breach coverage and cyber liability insurance protect your business by helping you prepare, respond and recover from an attack. This coverage can help pay for:
  • Expenses to notify impacted customers or employees of a cyberattack or breach
  • Credit monitoring services for affected individuals
  • Advertisements to try to improve your business’ reputation
  • Judgments and settlements from a lawsuit

Employment Practices Liability Insurance

Current and former employees can sue business owners for discrimination, harassment or wrongful termination. To help cover this kind of claim, you’ll need employment practices liability insurance. Without it, you’d have to pay to defend your business or any judgments and settlements out of pocket.

Management Liability Insurance

Business owners that employ financial professionals face a variety of risks. Our management liability insurance includes five types of coverage to help protect these employees from financially devastating lawsuits:
  • Directors and officers (D&O) insurance
  • Employment practices liability insurance
  • Fiduciary liability insurance
  • Crime insurance
  • Kidnap/extortion and ransom insurance

Commercial Umbrella Insurance

If a liability lawsuit exceeds your policy limits, your business would have to pay the difference. Commercial umbrella insurance can extend the liability limit for some of your policies. So, if a customer falls at your place of business and their medical bills exceed your general liability insurance limits, your commercial umbrella policy can help cover the rest of the costs.

How Does Liability Insurance Coverage Work?

What Type of Damage Does Liability Insurance Cover?

Liability insurance coverage can help protect your business by covering the cost of damages resulting from an accident.
  • Bodily Injury Liability Insurance helps cover someone else’s medical bills that result from an injury or accident.
  • Auto Liability Insurance helps pay for vehicle repairs or damages caused by a car accident.
  • Property Damage Liability Insurance helps pay for damages you or your employees cause to someone else’s property.
Generally, if someone sues you or makes a claim that your company hurt them or damaged their property, your liability insurance policy can help cover the costs as long as your insurance company considers it a covered claim.
For example, one of your employees is making a delivery to a customer when he swerves off the road and crashes into someone’s fence. The homeowner sues your business for damages. Your auto liability insurance coverage can help cover the repair or replacement costs to fix the damaged fence. Without this property damage coverage, you’d have to pay for the repairs out of pocket.

Common Questions About Liability Insurance

What Is the Recommended Liability Car Insurance Coverage?

Liability car insurance coverage comes in two primary forms: bodily injury liability coverage and property damage liability coverage. Most states have a minimum amount of liability coverage that drivers need to carry. Your commercial auto insurance quote will meet the minimum coverage amount your insurer is required to provide in your state. You can add more liability coverage if your business needs it. The higher your liability limit, the more protection you and your employees have on the road while driving for business.

Do You Need Liability Insurance if You Have an LLC?

Yes, you likely need liability insurance coverage even if you have a limited liability company (LLC). LLCs separate your personal assets from your business, but your company still faces liability risks. Without liability insurance, your LLC will have to pay for claims out of pocket, which can devastate your business.

Get a Quote for Liability Insurance Coverage Today

It can be hard to know which liability insurance coverage your business needs, but we can help. As an insurance company with more than 200 years of experience, we’ll explain all of the risks your small business faces and will work with you to get the products and services you need. Get a quote today to learn more.
The Hartford shall not be liable for any damages in connection with the use of any information provided on this page. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs as this information is intended to be educational in nature.
The information contained on this page should not be construed as specific legal, HR, financial, or insurance advice and is not a guarantee of coverage. In the event of a loss or claim, coverage determinations will be subject to the policy language, and any potential claim payment will be determined following a claim investigation.
Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. In TX, this insurance is written by Sentinel Insurance Company, Ltd., Hartford Casualty Insurance Company, Hartford Lloyd’s Insurance Company, Property and Casualty Insurance Company of Hartford, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Hartford Accident and Indemnity Company and Hartford Fire Insurance Company. In Arizona, New Hampshire, Washington and California, the insurance is underwritten by Hartford Accident and Indemnity Company, Hartford Casualty Insurance Company, Hartford Fire Insurance Company, Hartford Insurance Company of Illinois, Hartford Insurance Company of the Midwest, Hartford Lloyd’s Insurance Company, Hartford Underwriters Insurance Company, Maxum Casualty Insurance Company, Maxum Indemnity Company, Navigators Insurance Company, Navigators Specialty Insurance Company, Pacific Insurance Company, Property and Casualty Insurance Company of Hartford, Sentinel Insurance Company, Ltd., Trumbull Insurance Company and Twin City Fire Insurance Company. The Hartford® is The Hartford Financial Services Group, Inc. and its subsidiaries, including Hartford Fire Insurance Company.
The Hartford® is The Hartford Financial Services Group, Inc. and its property and casualty subsidiaries, including Hartford Fire Insurance Company. Its headquarters is in Hartford, CT.
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