Business liability insurance works in a similar way to personal liability, but due to the fact that many businesses have individuals working on their premises; the risk of injury is often higher. Due to this, businesses often require much higher liability cover than individuals do to cover any claims that may result from lawsuits against the business. Most business insurance policies will therefore have significant liability cover included, although many insurance companies offer additional cover if a business feels that it is required. Based on the type of business you work in, your cover may need to be higher. Additionally, if your business is a small start-up enterprise under sole proprietorship and an injury or other form of damage occurs on your premises due to neglect or any other reason and your business liability insurance cover is insufficient to cover the resulting claim from the 3rd party, the owner of the business will be liable for the excess.