Liability is a very general term that covers any type of injury, damage or financial loss suffered by one party which can be a person or some form of property due to the negligent actions carried out by another party. For instance, in context of general business insurance, if someone or something gets damaged or hurt, within a company’s premises, due to some neglectful action by any of the employees, in that case the suffered party can demand money in order to compensate or manage the loss.
The company can then choose to either compensate the suffered or damaged party or it can choose to file for the claim by contacting its business insurance company, and demand the required compensation in order to pay the party that has sustained the loss.
So the word liability is very general which signifies covering an action that has caused loss both in terms of physical loss as well as monetary loss to the other party.
All types of businesses, whether small or large, must get themselves secured by opting for a good general business insurance policy.
If the insured company deals in offering services or is engaged in the production of a product, then the company may consider product and professional liability insurance in order to settle potential unfortunate events related to such issues.