In today's litigious society, even small mishaps can result in large lawsuits. That's why general liability insurance, along with property and worker's compensation insurance, is essential for most companies. Liability insurance protects the assets of a business when it is sued for something it did (or didn't do) to casue an injury or property damage.

General liability insurance can be purchased seperately or as part of a business-owner's policy (BOP). A BOP bundles property and liability insurance into one policy; however, the liability limits are generally pretty low.  Businesses that need more coverage usually purchase liability insurance as a separate policy.  The amount of coverage a business needs depends on a couple of factors:

• Percieved Risk. Business owners should first consider the amount of risk associated with their business. For example, a business that manufactures heavy machinery is at a greater risk of being sued than a company that manufactures linens, and would therefore need more liability insurance.
• The State In Which You Operate. Businesses that operate in states with a history of awarding high damage amounts to plaintiffs typically need to carry liability insurance with higher coverage limits.  Heartland Insurance can offer guidance in this area.