Charles Spinelli: When Is Liability Insurance Needed?
istockphoto.com Charles Spinelli: Who Needs Liability Insurance? Liability insurance is a product that protects against claims resulting from damage to other people or property. Liability insurance covers any legal expenses an insured party is responsible for if found legally liable. Intentional damage is typically not covered in liability insurance policies, notes Charles Spinelli. Unlike most types of insurance, liability insurance pays third parties and not policyholders. Consider these scenarios whether you have a dedicated building or you work from home. If any apply to your business, you need liability insurance. You have an employee or employees. If you employ another person (both full-time and part-time), you open yourself up to potential legal issues. For instance, if your employee often fails to show up for work on time and you fire them, they could sue you. Your employee may accuse you of anything, from wrongful termination to sexual harassment. If you are sued, l...