Liability Loss Exposure

Liability can occur when an individual or an organization is held legally responsible for the injury or damage suffered by another person or organization. The possibility of being sued is a liability loss exposure.

Insurance answer
Liability concerns are usually the first issue for business insurance. A contractor may choose not to insure his tools or equipment but likely will not be able to work without proof of liability insurance. How much is enough? That is part of the discussion you should have with your agent or broker.