A business however big or small means responsibilities of many kinds. And one of the things every business needs is liability insurance.

When running a business as a partnership or sole proprietorship it means that your business and personal liabilities are at risk. To protect yourself and the family from financial disasters it is essential to insure yourself with a business liability policy.

There are three kinds of liability insurance:

* General Liability Insurance: This covers legal suits related to the business premises, business products, or services.

* Professional Liability Insurance: Covers companies that are professional like lawyers, doctors, advertising or creative companies and so on.

* Automotive Liability Insurance: This covers those who drive company owned vehicles. The policy covers damage to vehicle in an accident, injuries to the company employee and to those injured in case of accident.

* Employers' Liability Insurance: This covers aspects like wage discrepancy, hours of work and on site work related accidents.

When buying liability insurance you need to make educated choices so that you get a good deal at the most affordable cost:

1. First familiarize yourself with all aspects of liability insurance by surfing online. Make notes of valid tips and guidelines and any points that are applicable to you. Understand the fine points of liability insurance.

2. Decide on whether you will find a policy yourself or use an agent. Choose an agent who will study your specific needs and then make recommendations. Most agents help their clients get great rates too.

3. Check with your existing insurance provider whether they have liability insurance. If yes find out what the advantages of buying a liability policy from the same provider is.

4. Memberships at a Chamber of Commerce, trade or business association often means that you will get group rates on liability insurance policies.

5. Liability insurance coverage varies from insurer to insurer so make a list of what you need and compare coverage. Keep in mind aspects like legal fees too.

6. Look for liability insurance online and offline. Very often the online offers could mean great savings. Online insurance directories and sites also have comparison tools that help you compare policies and quotes from different insures.

7. Think about buying an Business Owners Policy (BOP),that will cover many things. However you will need an insurance specialist to ensure your needs are met with additional riders on the policy.

8. Keep abreast with changes in state laws and insurance news. This will help you greatly when you need to make a claim or renew the policy.

Always buy a business liability insurance policy from a reputed insurer. Always make the effort to do a background check of the insurer and ensure that they have no complaints pending at the better business bureau. Choose an insurance provider that follows fair business practices.