Business Legal Protection Insurance
Business legal protection insurance is a type of insurance that protects small and medium-sized businesses from legal problems in liability, personal injury, property damage, and employee benefits. It is designed to protect your business and assets from the potential risks of legal liability and other misfortunes. This includes protection against potential losses caused by tort, contract, workers’ compensation, product liability, environmental liability and other misfortunes. With this type of insurance, your legal protection will be ensured, indemnity coverage provided, and the perfect time for recovery will come when needed most.
So, What is Business Legal Protection Insurance
Business legal protection insurance is often purchased along with other insurance types aimed at protecting businesses from financial losses. Business legal protection insurance can be purchased by both large and small businesses and partnerships, corporations, sole proprietorships, and other types of business entities. It is also designed for businesses in almost every industry. This type of insurance protects a wide range of business conditions and is tailored to each business’s unique situation.
Business legal protection insurance can be purchased as either primary or secondary coverage. Businesses typically purchase primary coverage with traditionally high rates of risk. Businesses generally purchase secondary coverage with lower risk profiles.
The claims under business legal protection insurance are generally covered for one year with limits up to an amount specified in the policy or policy that may be extended for further periods. It does not cover liabilities resulting from criminal acts or civil obligations. The coverage may be written with property damage coverage to ensure your business is against property damage claims. The coverage is restricted to legal damages related to commercial operations and does not include automobile liability and property damage claims under the direct and indirect ownership of the business. It does not include claims against work hours, salaries, wages, retirement benefits, disability benefits, medical expenses or unemployment insurance.
It is designed to help you to avoid the expense of defending yourself in court and reduces the chances of a penalty or other punitive damages being awarded against you. With this type of insurance, compensation to your clients and customers will be paid for any damages suffered, including legal fees to cover the cost of bringing a claim against you. If you have been held liable to a third party for injuries or damages, this will ensure that any damages awarded to them can be paid as per the policy.
Business legal protection insurance does not cover discrimination claims. Also, suppose you are self-insured under this policy but are involved in an accident causing injuries where liability cannot be proven before prosecution by the police. In that case, you will be on your own financially to cover any damages awarded against you by the court. However, you can use the personal injury insurance portion of this coverage to help recover any compensation the business may pay for a claim where you are not self-insured. Business legal protection insurance is not an umbrella form of coverage. It is only one layer of coverage with limits designed for unique circumstances unique to each coverage.
Business legal protection insurance is usually purchased for a set period, typically annually. The policy can be renewed by paying the premium for an additional year. If you are covered under an expiring policy, you will need to purchase another policy to protect against potential claims against your business. If an incident occurs during the business legal protection insurance term, you have up to six months from the date of the incident to claim against the insurance company.
You can also tailor a legal protection insurance policy to fit your business’s needs by limiting the coverage you write for. This helps control annual costs and payments by creating a more customized product suited to your unique needs. You can review the general legal protection insurance laws and guidelines. You can compare different types of coverage and rates that you can obtain from different insurers and companies.
Legal protection insurance can limit or eliminate your need to obtain property or casualty (P&C) insurance. You can also protect your business against liability deposits or bonds that may be required of you by your bank, landlord or customer for lease agreements, contracts and sales of goods.
Like any other type of insurance, business legal protection insurance is not meant to make you invulnerable to losses. This type of insurance is designed to help ensure that you are protected financially if a loss occurs. The decision to purchase this type of insurance must be made after careful consideration and consultation with your financial adviser, lawyer and other people who can provide you with the correct information and advice for your situation.
The cost of a business legal protection policy will vary depending on the complexity and size of your business and the geographic location of your business. Depending on your coverage needs, you can select from a wide range of deductibles.
If you are interested in receiving more information on business legal protection insurance, your insurance agent or broker can provide you with some details about the policy. The cost of this policy will depend on many factors, including business operations, employee size and geographic location.
Read more about Business Legal Protection Insurance here.
Other useful links about business insurance:
Business Contents Insurance
Business Building Insurance
Employers’ Liability Insurance
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