Commercial liability insurance is designed to cover injuries caused by you, your company, or your products/services to a third party. For example, if one of your products were to injure a third party, liability insurance would provide coverage in case you were sued for damages. The injury does not need to be physical, it can also be financial. For example, if you are a software firm and the software you provide to a client is hacked due to poor security, and individuals suffer financial loss, you could be sued. Again, that is where liability insurance can provide protection. In most places in the world some form and amount of liability insurance is required. However, it is important to work with an insurance professional who will work with you to understand your unique business needs and custom design a program to protect you and your business.