Speaking Of Liability…

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There are different types of liability insurance. In our last blog we discussed auto liability. There is also general liability and professional liability, but what is the difference? The easiest way to remember is by remembering that general liability is just that–general. Professional liability is also called Errors and Omissions Insurance or Malpractice Insurance. So when you are speaking of liability insurance, make sure you know which.

What’s General about General Liability Insurance

General liability insurance covers situations that can affect any business. If your business gets sued by a third party–which means someone who doesn’t work for you–general liability helps protect your business. General liability will help cover expenses for:

  • Lawyers’ fees
  • Court costs
  • Settlements or judgments

If you are sued for a bodily injury that happened on the premises of your business, damage to a third party’s property caused by your business, or advertising injuries such as slander, libel, copyright infringement, or misappropriation, that is when general liability insurance kicks in.

What’s Professional about Professional Liability Insurance?

Professional liability covers lawsuits regarding your professional services. Whether or not you are at fault, you can be sued for the following:

  • Negligence
  • Incomplete or second-rate work
  • Mistakes
  • Omissions
  • Broken contract

And, whether or not you are at fault, your professional liability insurance will cover your legal expenses.

However…

Professional liability and general liability insurance do not cover the same claims. While general liability will protect you if someone were to slip and fall on your business property, professional liability will not, and while professional liability will protect you from the cost of professional mistakes, general liability will not. Therefore, for your business to be completely covered, you may have to purchase both a professional and a general liability policy.

ABOUT YOUR CARROLLTON, TX, INSURANCE COMPANY:

With over 20 years of experience in the insurance industry, the Jeff Van Matre Insurance Agency can help you choose the right coverage plan to protect your personal and business assets and put your mind at ease. To learn more, or to get a free quote,  call our Carrollton office today at 972-492-8500.