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Quick & Easy Overview of Liability Insurance for Business

Read time: 2 minutes

We’ll make this easy.

You need liability insurance but have some questions. No problem! Check out our quick overview of what liability insurance is, what it covers and how you can get a quote, below.

What is liability insurance for business? Two individuals working out of a food truck handing a plate of food to customers.

Liability insurance provides coverage for bodily injuries and property damage resulting from your business’ products, advertising, services, or operations. 

Essentially, it is your business’ safety net for when something goes wrong.

For example, let’s say you own a food truck. In a recent stop, you learn that several customers feel sick after eating your food. You offer refunds and apologize. Unfortunately, a few decide to file suit against you.

Your liability insurance will cover these costs and your legal fees.

Read more: How to Avoid Common Commercial Insurance Pitfalls


What does liability insurance for business cover?

As our example above illustrates, it’s important to remember you’re insuring more than just the initial damage. Your liability insurance limit should also include considerations for other resulting damages and legal fees in the event of a lawsuit.

Every business’ liability risks are unique to them. But, generally speaking, your business’ liability insurance will include coverage for things like:

  • Legal fees
  • False advertising accusations
  • Damaged property
  • On-premise injuries
  • And more

Read more: How to Help Your Small Business Employees Save for Retirement


Why is liability insurance important for your business? A chef in a commercial kitchen looking down with hands on counter.

Liability insurance is crucial for businesses. It’s there to address potential damages that you become legally obligated to pay as a result of a covered loss.

Some industries may require your business to have liability insurance before doing business with you. And, depending on your industry, your state may have a mandated minimum amount of liability insurance.

So, yes, it’s important.

Read more: 8 Steps to Feel Confident in Your Commercial Insurance


How to get a quote for liability insurance for your business

Every business’ liability risks are unique. That’s why we recommend talking with your local, independent insurance agent. There are so many advantages to working with an independent agent, to name a few:

  • Local support from somebody you know. If you need to file a claim you will know who to call. Not to mention, if you have questions about your policy you can call your agent rather than waiting on hold for what feels like forever.
  • Local-area expertise. They understand the insurance needs specific to your area because they live and work in your community.
  • Expert advice and guidance. An independent insurance agent will review your business’ operations to find you the best coverage.
  • Support your community. You are supporting a fellow local business when you work with an independent insurance agent.

Read more: What Is an Independent Insurance Agent? Everything You Need to Know

Summary: Liability insurance for businesses is important and is best discussed with your local, independent insurance agent.



*Products referenced may not be approved/available in all states. Limitations and conditions may apply. Premium will be based on benefits chosen and policy rates available at time of application.

Disclaimer: This article is not expert advice. The analysis of coverage is in general terms and is superseded in all respects by the Insuring Agreements, Endorsements, Exclusions, Terms and Conditions of the Policy. Some of the coverage mentioned in this material may not be applicable in all states or may have to be modified to conform to applicable state law. Some coverages may have been eliminated or modified since the publishing of this material. Discounts may not be available in all states. Limitations and conditions may apply. Premiums will be based on benefits chosen. Please check with your local Independent Auto-Owners Insurance Agent for details."

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