Business InsuranceYes, business insurance cover a lawsuit. In fact, it’s one of the main reasons this coverage is so essential. Even businesses that are all-digital require business insurance — simply because of the liability concerns that arise when you're running a company. However, your insurance might not cover all lawsuits. Here's what you need to know:
  • Your general liability policy will cover most of the common lawsuits. These include libel and slander, product liability, copyright lawsuits, and third-party property damage and bodily injury.
  • General liability might not cover lawsuits pertaining to employee injuries, professional errors, or discrimination.
  • General liability exclusions like these may be covered instead by other forms of insurance, which may be included in a broader business insurance package, such as employment practices liability insurance, or errors and omissions insurance. In the case of employee injury, you will generally be covered by your workers compensation coverage, and it shouldn't have to go to trial.
Generally speaking: If it's a legal risk for your business, you can find an insurance policy to cover it. Exceptions are generally made not for type of lawsuit, but for the risk involved in covering a business. A company that sees several discrimination lawsuits a year, for instance, is likely going to have a hard time finding an insurance company to provide them with protection. Business insurance will provide protection against lawsuits, but it generally will not provide any support for businesses that want to press charges against other people or businesses. There may be exceptions given the nature of your policy and of your business, just as auto insurance may cover lawsuits against uninsured drivers, but you will want to discuss these with your insurer up front to ensure that you know precisely how far your protection goes. For many businesses, legal risks are a prime concern, well ahead of risks to the company's physical property. These risks are the main reason for investing in business insurance in the first place.
Posted 12:17 PM

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