DEFINITION of 'Business Responsibility Insurance'
Insurance that defends a organization and/or entrepreneur in the occasion of a official court action or other third-party claim. Protection includes any financial liability suffered in addition to expenses relevant to the organization's lawful defense. There are three main types of organization liability insurance: general insurance policy, professional insurance policy and product insurance policy.
INVESTOPEDIA EXPLAINS 'Business Responsibility Insurance'
If you are a entrepreneur, your form of possession - especially a collaboration or only proprietorship - could put your financial situation at threat in the occasion of a business-related court action. Even under a limited liability organization (LLC) you could still be exposed to individual threat. Business insurance policy can provide you with greater insurance policy protection than is offered by your lawful structure.
New or additional plans should contain an exceptions stipulation to reduce cost by avoiding duplications of coverage provided in other guidelines and/or to eliminate any unwanted coverage.
