Business liability insurance is a type of insurance you can buy to protect your business from claims that may be brought against you or your business. Business liability insurance covers your business from legal claims and lawsuits, as well as damages, fines, and judgments that may result from bodily injury, property damage, or other business-related incidents.
For example, if you work in construction, someone could slip and fall on a wet floor because you didn’t put up any caution tape or cones to warn them of the wet areas. If you are sued by a customer for a faulty product or a service that you provided, business liability insurance will protect you from financial loss.