You own a jewelry and clothing store that imports accessories from out of the country. Unfortunately, a pair of earrings gives one of your customers an infection requiring medical attention. Even though a different company supplied the earrings to you, your business is still held liable for selling them when the customer pursues legal action for damages. Your Liability Insurance is able to help cover the costs of legal fees and medical costs. 

You’re a contractor replacing your client’s chimney but accidentally, one of your team members causes a hole in the roof in the process. Your client sues your business for the damages on their home. Liability Insurance helps you cover the legal fees and payout for the damage.

You own a restaurant and a guest comes in with a serious nut allergy. Accidentally, one of your waiters mixes up the dishes getting served, gives your guest a dish that contains nuts and causes them to have a severe allergic reaction. The guest is immediately sent to the hospital and survives but ultimately sues your restaurant for medical costs and damages; your Liability Insurance can help cover these costs and legal expenses.