The Importance of Business Liability Insurance
A business owner should always consider whether business liability insurance is prudent for their new and/or existing business. In almost all cases, the answer is affirmative. The recent Gatlinburg fire in Tennessee, which tragically swept through the region and destroyed and/or damaged many local businesses, further affirms that business owners should at least consider having some sort of insurance in place to cover their assets and/or the assets of their customers.
Gatlinburg Fire in Tennessee
Businesses affected in the fire would be in a really dismal financial and legal position if they did not have liability insurance in place covering natural disasters, namely fires. For instance, the Westgate Resort was affected in the Gatlinburg fire. The Westgate Resort is a Florida-based timeshare resort, which expanded beyond Florida to Tennessee. “Literally, in 15 minutes it was like a flash fire that come over the top of the mountain,” said the resort’s Chief Operating Officer according to the Orlando Sentinal. The main check-in building and some cabins were damaged in the fire. Also, completely destroyed in the Gatlinburg fire was the Alamo Steakhouse.
Review the list of destroyed businesses and landmarks in Gatlinburg, Tennessee at the following link:
Commercial Insurance Coverage
Typically, the following coverage is contained in the basic commercial insurance policy: lawsuits, investigations and settlements. Also, bodily and/or property damage that results from business operations should be covered by the general business insurance policy. Further, the insured can obtain additional coverage, which may protect against risks including:
- Fire legal liability;
- Employment-related practices liability;
- Liquor liability;
- Director’s and Officer’s liability;
- Professional liability in the case of professional businesses (ie: accounting firms); and/or
- Auto liability.
Umbrella policies can also be obtained. Umbrella policies extend coverage above other liability coverage. They are designed to protect against unusually high losses when the policy limits of one of the underlying policies have been used up.
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