How do I know what to carry for limits of coverage?

There is no single answer to this question; however, no business can afford to be unprepared for a lawsuit. Liability insurance protects your business assets when the business is sued for something the business did (or failed to do) that contributed to injury or property damage to someone else. Liability coverage extends not only to paying damages but also to the attorneys' fees and other costs involved in defending against the lawsuit-whether valid or not. The limits of liability that you carry will depend upon the assets that you need to protect, and what type of protection your business structure offers you (for example, a corporation versus a sole proprietor). Discussing your particular situation with your insurance professional will help you identify limits.