General liability insurance for a loss caused by an entrepreneur to a third party is obligatory by law. It covers the entrepreneur's expenses for claims of third parties which he carries legal responsibility for. If you undertake a small business, the loss in question does not necessarily have to happen due to your negligence or due to violation of your legal obligations. In many cases you are responsible for a loss regardless of whose fault it is (i.e., objective fault).
Losses which you can incur:
Insurance of liability for loss incurred to the insured person in the result of:
All these events are covered by the liability insurance for business.
A specific type of loss incurred to a third party is a liability for a loss due to a faulty product, or due to faulty execution of work after its handover. Your product can cease to perform its functions due to faulty construction or material fault and as a result may cause losses (e.g., faulty refrigerating equipment may cause damage to stored food in a shop). The subject of the insurance is not the faulty product itself (a mender), but a loss which it incurred. You are responsible for incurred loss even in case that you are not the producer of the product, but its distributor, importer or supplier.
Therefore we recommend you to conclude the liability insurance for business from Maxima insurance company, as.