Sometimes, accidents happen. However, they are not always minor events and may lead to someone being hurt. As a business owner, this is why you carry general liability insurance. But what about errors and omission coverage? Do you need general liability and errors/omission, or is one enough for your company?
General liability is coverage that protects your company in the event that a person or client becomes injured. Whether you are directly or indirectly responsible, this policy helps cover settlements you may owe. The accident or injury may occur on your premises or as a result of your services. The key being, this coverage is meant for a physical injury or damage to a person’s property or personal belongings.
Errors and Omission
While this is also liability coverage, there is a major difference. If an error or accident on your part causes a person financial harm or mental distress, then you could owe a settlement, one that may not be included with your general policy. However, and errors and omission policy is designed to address this scenario.
Do You Need Both?
You may consider carrying both, adding just another layer of protection for you, your business, and your employees. After all, if an unfortunate incident should close your doors you aren’t the only one who suffers as a result. We particularly recommend the errors and omission option for those who’s work has a significant impact on a client’s health and wellbeing, such as doctors, dentists, and even lawyers and accountants.
What About A Car Accident?
Above we discussed how the general policy covers injury to person as a result of your services or on your property. What about a car accident? For that you will need another policy, commercial auto. This provides liability protection for you and your employees should a company vehicle be involved in an accident and you’re ordered to pay medical or repair costs.