There are three common forms of liability insurance for a small business. The most common of these is general liability insurance, although this is also known as umbrella liability insurance for a small business. The other common form of liability insurance for a small business is product liability.
General liability for small business owners and large businesses alike cover legal hassles that a business may encounter due to claims of negligence. A general liability for small business policy can help protect the small business from payments which result from bodily injury, property damage, medical expenses, the cost of defending the small business against lawsuits, as well as providing relief from having to satisfy settlement bonds or judgments that a court may require while the case is undergoing an appeal procedure.
The relief from satisfying bonds or judgments during appeals usually will have to be repaid in the event the appeal is not successful, although the specific terms depend upon the specific policy which provides general liability insurance for a small business.
Product liability insurance for small companies can be important for any small business because every product is capable of contributing to personal injury or property damage. This liability insurance for a small business involved in the manufacture, wholesale, distribution, and retail of a product can be important because a litigious individual who is harmed may decide to file lawsuits indiscriminately if they are hurt, making protection from these suits vital.