Liability insurance is when you cover any visible or possible liability that you may have with proper insurance. When businesses or commercial establishments purchase insurance to cover their liabilities, it is called as commercial liability insurance.

One has many options of applying for commercial liability insurance. However it is the insurance company that, by using their underwriting standards, determines if the business is eligible for insurance and for how much. The insurance companies have classifications on businesses, and any new commercial liability insurance has to fall in one of those classifications. This means that even a company with a totally clean record might still have to pay a high premium for commercial liability insurance.