When you think of protecting your business, the first thing that comes to mind is probably the building, computer equipment and other physical assets that required a substantial investment. But liability risks are equally as important for you to consider. What is a liability risk? 

A liability is your business’ financial responsibility to another party. For instance, if a customer is injured in your store because a sticky puddle was left un-mopped, the business will likely be responsible for that person’s medical bills. And because we live in a highly litigious society, you also have to consider the chance of lawsuits being filed against your business. 

But with a business insurance policy that includes general liability coverage, you have protection against similar events. If a third party files a claim against your business, your insurance provider can step in to foot the bill (up to policy limits). 

Some common liability risks include the following: 

• A customer or other third party being injured on premises 
• Property damage experienced by a third party 
• Any action that results in a loss to a third party 

General liability insurance does not cover employees or people otherwise tied to the business. It is solely designed to protect customers, visitors, mail carriers and other people that are not associated with the business, yet experience a loss because of the business. 

Because the costs related to a liability event can be unpredictable, you also have the option to add on umbrella coverage. This essentially adds on another layer of protection in the event that a claim surpasses policy limits.