Business responsibility goes both ways

Most homeowners understand the importance of liability insurance.

If someone visits their property and is injured, they can be held responsible. All too many people have found out the hard way what not having liability cover can mean for their finances.

A family barbecue or friendly pool party can quickly take a turn for the worse and lead to major costs. However, business owners must think of liability in multiple ways.

Protection for the premises

Just as with homeowners, businesses must be aware that a client or employee could one day get injured on the premises and leave the owner liable for everything from medical bills to lawsuits.

Business liability insurance is designed to keep business owners financially protected if they are found liable under numerous circumstances.

Even if you're ultimately not at fault, the legal costs associated with lawsuits can be financially devastating, making insurance a key form of defence.

Protection for the products

However, businesses must think about other forms of liability, as well.

If a business provides goods or services to the public, and an accident occurs as a result of them, it can be held liable.

Whether it's something you manufacture yourself, sell in a store or deliver, you can be left on the hook if someone is injured or killed, or their property is damaged.

With this in mind, it's easy to see how liability should be a key focus of business insurance. While average people only need to worry about their property, a business must also keep in mind its professional services and how they might come back to bite them.

Fortunately, there are many insurance options available to help protect businesses, including policies that extend to vehicles used for commercial purposes.