Going into business sometimes means navigating new strategies and encountering unfamiliar terms; the insurance aspect can be one of the most confusing, especially if it’s not a world you’ve dealt with much in the past.
Researching what you need, what’s a good idea, and what you can do without are some of the first steps in understanding what your business will require, insurance-wise. Defining terms, and learning what each type of coverage is and isn’t is a good practice to go along with that.
A common question from business owners, consultants, or freelancers is, “What’s the difference between Professional Liability and General Liability?” The natural follow up to that question is, “Do I need both? Or does one include the other?”
General Liability is a policy that insures you against claims from a third party that allege bodily/personal injury or property damage. It typically covers legal costs like settlements, defense fees, and other expenses. This is a building block for most businesses–you may hear it referred to as “Slip and Fall” insurance and if you’re a contractor, clients you work with may require it in order to do business together.
Professional Liability is also known as Errors and Omissions. This coverage generally applies to the professional who offers services and is typically concerned with financial damages that arise out of mistakes or lack of completion. It’s more specific than a General Liability policy and applies to the arenas that need “expertise”. Lawyers, IT specialists, and many types of contractors and freelancers benefit from this coverage. It may not be required by your state or professional organization, but it could be a very good idea that might save your practice/career in case of a claim.
No matter what type of business you engage in, consulting with an insurance specialist about your business insurance needs is wise and could be the most important part of your business plan. Lawsuits, even those that are unfounded or frivolous, can often end business dreams, and the surest way to ensure your future–even if you’re very good at what you do–is to be certain that you’re insured to the best of your ability.
Risk management is an art, and our business is helping you protect your business. Call us today at 1-877-907-5267 and let one of our specialists guide you in the search for finding the coverage that’s right for your business.