What is the purpose of commercial liability insurance?

The purpose of commercial liability insurance is to provide protection against legal claims arising from business operations. This type of insurance covers the legal costs associated with lawsuits, which can include attorney fees, court costs, and any settlements or judgments if the business is found liable. In the context of interior design, where professionals might face claims related to property damage, personal injury, or breach of contract, having liability insurance is crucial for safeguarding against unexpected legal expenses that could arise from common business activities.

Enhancing design quality, employee training, and managing project budgets do not fall within the scope of commercial liability insurance. While these elements are important for a successful interior design practice, they do not provide protection against the financial impact of legal issues, which is the primary goal of liability insurance.