Introduction
Because mistakes happen, we need liability insurance.
Essentially, liability insurance is there to clean up after your business's mistakes, providing
coverage for claims related to negligent business activities (injury related to the use of your
product, for example) or the failure to use reasonable care. The insurer typically pays damages
and legal defense fees as well as case-settlement charges.
How much liability coverage do you need? This can be difficult because benchmarks really do
not exist. While some brokers recommend that your coverage match that of the largest court award
for a case relevant to your business, others base recommendations on company assets.
Moreover, unlike property, which has a fixed value, liability claims do not have any limitations.
In this lawsuit-crazed society, the sky could indeed be the limit.
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