Besides protections against claims from clients, customers or other visitors to your business, business liability insurance protects against advertising injury. This refers to claims of false advertising, libel, slander or copyright infringement. For example, if you put out an ad that mentions one of your competitors in a negative light and they sue you with a claim that the ad negatively impacted their business, your insurance can protect you from the costs of defending yourself.

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Whether you win or lose, such lawsuits can be extremely costly and time-consuming, taking your focus away from generating revenue. This can be devastating for a small business, so general liability insurance is extremely important. Small business liability insurance allows you to focus on your business even when you're facing a claim of damage, injury or negligence.

Another benefit of business liability insurance is protection against damage to property you rent. If any equipment or other property is damaged by fire, lightning or an explosion, your insurance will cover the costs.

There are several other types of liability policies that some businesses may benefit from, including these policies:

• Professional liability insurance: This is designed for businesses that provide professional services for clients. Also referred to as E&O (errors and omissions) insurance, this type of policy covers businesses that are being sued for negligence in the services they provide. Basically, professional liability insurance covers businesses that are sued for making a mistake with a client, whether the claim is founded or unfounded.

• Management liability insurance: This is designed to cover businesses in instances where managers are sued for things like breach of responsibilities or wrongful termination. It includes more specific policies like directors and officers (D&O) liability, fiduciary liability, and employment practices liability.

• Cyber liability insurance: This protects your business from the expenses associated with things like computer hacks and data breaches.

New research from Chubb shows the importance of cyber liability insurance. According to the new report, the number of ransomware attacks in 2019 has already surpassed all of those for 2018. Overall, malware claims with Chubb, which include ransomware, have risen to 18% of all cyber claims in 2019. That's up from an average of 12% over the past five years. Additionally, Chubb reports that ransomware has accounted for 23% of its cyber claims for smaller businesses in 2019.

When you're deciding which types of liability insurance you may benefit from, the first thing to consider is your type of business. How large is your organization? What is its legal structure? What industry are you in? Where is your business located? Answering all of these questions will help you determine which liability policies you need to properly protect your business.

You don't have to figure this all out on your own. Don't hesitate to talk to various insurance agents to get their take. Give them all of the details on your business and how it operates, and they will be able to make recommendations based on their industry expertise.