A general liability insurance policy is something all businesses need. Such policies reduce your risk of exposure by protecting the business from personal injury and from property damage which is caused by your business causes by either not doing or not doing properly.
General liability insurance is meant to cover personal injury, bodily injury, property damage, and unforeseen circumstances which affect your business or work product.
What general liability will not cover, however, are such things as failure to perform duties to your industry standard, professional negligence, or product liability.
Now, you may be saying to yourself, “I am an excellent worker in my craft. I go above and beyond all the time.” But accidents do happen. You may be distracted or clumsy one day, and that’s all you need in order to be wiped out if you have no coverage.
Aside from that, even if you are always perfect at your craft, it is not outside the realm of possibility that a client or customer says that your work or product caused them pain and suffering. That client or customer could be 100% wrong or just filing a claim in the hopes that you’ll settle, but that in itself is enough to cost you a pretty penny in lost time from work, lawyers’ fees, or court costs. And that could be enough to drive you to bankruptcy.
Realtors, doctors, accountants, soap and candle makers, and computer repair people are only a handful of the types of businesses which will likely need errors & omissions policies.
As we so often counsel you, talk to your licensed insurance professional for help in determining what coverages you need to protect yourself from risks.