Liability Insurance

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Liability insurance, in a business context, protects your company from financial losses arising from claims of negligence, errors, or omissions that cause harm to third parties. This can include bodily injury, property damage, or financial loss suffered by clients, customers, or the public due to your business operations, products, or services.

TLDR: Liability insurance protects your business from costly lawsuits, covering legal fees and compensation so you can focus on growth and safeguard your reputation.

Purpose: The primary purpose of liability insurance is to shield your business from the potentially devastating costs of lawsuits and legal claims. In today's litigious environment, even a small mistake can lead to significant financial penalties, legal fees, and reputational damage. Liability insurance provides a crucial safety net, allowing your business to operate with confidence.

Coverage: There are several types of liability insurance, each covering specific risks: 

• Public Liability Insurance: Covers claims for bodily injury or property damage suffered by members of the public due to your business activities, premises, or products. For example, a customer slipping and falling in your store.
• Professional Indemnity (PI) Insurance: Also known as Errors & Omissions (E&O) insurance, this protects professionals (e.g., consultants, IT service providers, designers) against claims of negligence, errors, or omissions in their professional advice or services that cause financial loss to a client.
• Product Liability Insurance: Covers claims for injury or damage caused by defective products manufactured, supplied, or sold by your business.
• Employer's Liability Insurance: (Often part of Worker's Compensation, but can be a standalone for non-manual workers not covered by WICA) Protects employers against legal liability for injuries or illnesses sustained by employees in the course of their employment.

Use-Case: Consider a design firm produces a brochure with a factual error, causing financial loss to a client. The client sues for damages. Without Professional Indemnity insurance, the firm faces huge legal and compensation costs. With PI insurance, these costs are covered, protecting the business from financial ruin.

Looking to safeguard your business? Our expert advisors are here to help you find the right liability insurance for your industry. We work with 18 trusted insurance partners in Singapore to ensure you’re covered against unforeseen legal risks.