It is a fact that certain insurance policies cover certain things. Insurance policies can seem broad and confusing to the lay person yet be very specific. That seems like an oxymoron “a broad specific” insurance policy, however, it is true. Certain policies cover certain things and to cover other tangibles or other circumstances you will probably need another policy. Most businesses require more than one policy to have full coverage of the most important issues and circumstances. That means that you may need to carry a general liability policy and a professional liability policy.
General liability typically covers such issues as bodily injury, personal injury, advertising injury claims, and property damage. It doesn’t matter whether or not you are at fault. If you are sued for causing a direct or indirect injury to someone or to someone’s property, general liability helps you cover the cost of your defense against these allegations. Such coverage includes:
- Personal injury that happens on your business premises
- Damage to another’s property that takes place on your business premises
- Accidents and injuries caused by a service you provide or a product you sell
- Damage to another’s property caused by a service you provide or a product you sell
- Defamatory statements (libel and slander)
Professional liability insurance provides coverage against a client/s claim that your services caused them financial loss. Also referred to as professional indemnity insurance and errors and omissions insurance, it helps cover the costs of defense and awarded damages associated with professional services and advice. Professional liability will cover claims such as:
- Inaccurate advice
- Violations of good faith
- Violations of fair dealing
To find out if you need to carry both general liability and professional liability insurance, talk to your insurance agent. He or she will help assess your individual situation and determine your insurance needs.