Liability insurance also known as Commercial insurance protects you in the event you are sued for claims that come within the coverage of your liability insurance policy. If you are a small business owner, there are many reasons why you should learn more about what commercial insurance means to you.

Owning a business puts you at considerable risk – from third party claims, property damage, or even employee theft. Without liability insurance, these monetary pitfalls fall on your shoulders, placing a burden on your business and personal assets. Some industries require business owners to have certain types of business insurance before they can attain licenses or begin client work. Make sure you follow legal guidelines for your state regarding your small business insurance policies.

Evaluating sources of potential losses, and the risk associated with each, can help you determine if you can get rid of the risk entirely, or make sure your insurance policy covers this type of potential claim. Performing risk management for your small business can be a great way to understand exactly the type of coverage your small business needs, and which insurance policy can best suit your needs and budget.

Your liability insurance policy only provides protection only as long as your policy coverage is under affect. This means that only the claims made and reported in the liability insurance policy period will be covered. When you cancel your policy you may not have protection in place, even if a claim later arises from work completed during a period in which you had insurance. So it’s wise to keep coverage in place even after you have completed a project. However, if you must cancel your liability insurance coverage, you can opt to purchase an extended reporting period.

Liability insurance premiums vary a lot depending on several factors, including the size of your business, your occupation, the types of activities you conduct, and the level of protection you choose.