As a business owner, you may need clarification about whether to buy either or both general liability insurance or professional liability insurance. While they may seem similar, they are separate insurance covering distinct aspects of your business.
This blog offers a detailed comparative review of general and professional liability insurance to help you decide on enhanced business security.
General liability insurance provides coverage for claims against your business related to bodily injury and property damage, personal and advertising injury, and medical payments. The claims can be expensive in addition to legal costs. Without this insurance coverage, you may have to pay from your pocket, which can financially devastate your business.
You may use general liability as a stand-alone policy or as part of the Business Owner’s Policy (BOP). Let us see what all is covered if you have general liability insurance:
It pays for third-party injuries and damage to property for which your business may be liable. The incidents that cause the injury/damage are non-professional negligent acts and may occur within your business premises or can result from your business operations, such as the malfunction of your product or services.
Bodily injury also includes mental injuries and emotional distress, even if there are no signs of physical injuries. While the insurance has extensive coverage, there are certain exclusions, such as:
It covers your business for liability claims that arise out of specific instances, including:
It covers treatment costs for injuries received by non-employees as a consequence of your negligence. It pays for all necessary medical treatment, allied services, and funeral expenses. Unlike bodily injury and property damage liability and personal and advertising injury, it does not include legal liability coverage. It pays for smaller medical bills in an out-of-court settlement.
Professional liability insurance, also known as errors and omissions insurance (E&O), covers liability claims against your business related to your professional services. Usually, the clients claim compensation for their financial losses caused by your business due to:
Professional liability insurance can secure your financial interests if your business involves providing services to your clients. Businesses that need the insurance are:
While general liability insurance is a generic insurance product that most businesses require, whether you need professional liability insurance depends on your scope of work as it is specialty insurance aimed to cover service providers.
To ensure that your business is adequately covered with the right coverage, you must have business insurance tailored to your specific needs. Spotlight Insurance Group can help you get the proper protection at the best industry rates. Contact us today to safeguard your business, you can also call us directly at 720.923.1500.
