What type of insurance is a firm required to maintain?

A firm is typically required to maintain General Liability insurance with Products and Completed Operations coverage because this type of insurance protects the business from claims related to bodily injury, property damage, and personal injury that can arise from the company's products or completed projects. This is particularly important for firms in industries where they produce goods or provide services, as it helps cover legal costs and damages that may result from lawsuits alleging that products or services caused harm or damage.

This insurance not only safeguards the firm's financial assets but also reassures clients and customers that the business is responsible and can handle potential risks associated with its operations. Having this type of insurance is often mandated by contractual agreements with clients and is seen as a best practice in minimizing liability exposure.

Other types of insurance, while important in certain contexts, may not be universally required depending on the nature of the business. For example, Property Insurance covers damage to the firm's physical assets but may not address liability issues. Worker’s Compensation Insurance is essential for employee protection regarding work-related injuries but does not cover liability towards clients. Building Insurance is relevant primarily if the firm owns real estate assets but does not extend to operational liabilities. Thus, General Liability with Products and Completed Operations is the most comprehensive requirement for a firm's operations involving customer interaction and product