No Shortage of Liability Risks

Accidents and mistakes happen no matter how well a business is run, and the expenses involved in defending a lawsuit could be devastating, whether the owner is found to be at fault or not. Fortunately, liability insurance can help offset unforeseen legal costs (up to the policy limits) that could consume your business's profits or ruin its longer-term prospects.

Commercial general liability (CGL) coverage helps protect against risks associated with property damage, bodily injury, and personal and advertising injury. It may be purchased separately or as part of a commercial package policy or a businessowners policy.

There are also more specific kinds of coverage that may be warranted when businesses are exposed to risks that may be excluded from a standard policy.

IMAGE

Product liability insurance. Companies may be held responsible for the manufacture, distribution, or sale of a defective product that causes injury or harm. Although most CGL policies provide product liability coverage, it may be necessary to purchase a separate policy for riskier products that might otherwise be excluded.

Professional liability insurance. CGL policies do not cover losses arising from professional acts or duties. Malpractice insurance helps protect professionals in the medical field against liability for bodily injury resulting from their misconduct or lack of skill. Errors and omissions insurance applies to liability resulting from errors (something they did) or omissions (something they failed to do). Professionals commonly insured against errors and omissions include lawyers, accountants, real estate agents, engineers, architects, employee benefit managers, and those who manage money and property for others.

Employers liability insurance. Employers can help shield the business from employee lawsuits alleging discrimination, sexual harassment, or wrongful discharge by purchasing employment practices liability insurance. They can also purchase employee benefits liability insurance, which offers protection against suits related to the business's employee benefits program.

Commercial umbrella policies. If you think your business might need broader coverage or higher liability limits than what's available through your CGL coverage, you may want to buy a commercial umbrella liability policy. If a claim is filed against your business, the underlying CGL policy pays first, up to its policy limits. Afterward, the umbrella policy will pay the claim, up to its own limits.

Huffman Mayer Wealth Management Group
3705 State Rd Suite 100 Ashtabula, OH 44004
Phone: (440) 992-1515

Wells Fargo Advisors does not render legal, accounting, or tax advice. Please consult your tax or legal advisors before taking any action that may have tax consequences. Wells Fargo Advisors did not assist in the preparation of this material, and its accuracy and completeness are not guaranteed.

This information is intended for use only by residents of (AZ, CA, CO, CT, DC, FL, GA, IL, IN, KY, MA, MD, MI, MN, MT, NC, NJ, NM, NV, NY, OH, PA, SC, SD, TN, TX, VA, WA, WI, WV, WY). Securities-related services may not be provided to individuals residing in any state not listed above.

Investment and Insurance products:
  • Not Insured by FDIC or any Federal Government Agency
  • Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any Bank Affiliate
  • Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested

Investment products and services are offered through Wells Fargo Advisors. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC

A note about Social Media: Opinions, comments and actions taken on Social Media are those of the third party and do not necessarily reflect the views of the creator of this profile or of the firm. Social Media is intended for U.S. residents only and subject to the following terms: wellsfargoadvisors.com/social.

Links to third-party websites are provided for your convenience and information purposes only. Wells Fargo Advisors is not responsible for the information contained on third party websites.

©2018 Wells Fargo Clearing Services, LLC. All rights reserved.

FINRA’s BrokerCheck Obtain more information about our firm and its financial professionals
FINRA’s BrokerCheck Obtain more information about our firm and its financial professionals