Starting A Business? Get Insured: Installment 2


If you’re starting a business what types of insurance you need depend on whether or not your business is home-based, whether or not you have employees, and what type of business it is. That is why a good insurance agent is worth their weight in gold, because they can walk you through the different types of insurance coverage, what they are for, and whether or not you need them. Other than general liability insurance, which we covered in the first installment of Starting A Business? Get Insured, you may also need professional liability insurance.

Professional vs. General Liability

If you own or are starting a business, general liability insurance is a must-have and is a good start, but it is not everything you need. There is a difference between general liability coverage and professional liability coverage:

General liability coverage: While general liability coverage provides for damages to physical property, bodily injury, or death as a result of a product or service you offer, or as a result of an accident on property you either rent or own, it does not provide for financial damages due to a professional service you performed or failed to perform.

Professional liability coverage: While professional liability coverage provides for the financial losses due to negligently performing, or failure to perform, agreed upon professional services, it does not provide for bodily injury or property damage.

Professional Liability

Did you know that you don’t have to be at fault to be sued? It’s true and that is why you need professional liability insurance. Also referred to as Errors and Omissions Insurance or Malpractice Insurance, it specifically focuses on lawsuits regarding your professional services, by providing coverage for your legal expenses in case you are sued.  It protects you from third-party lawsuits claiming that you or your business:

  • Provided negligent services
  • Failed to uphold your contract
  • Provided incomplete work
  • Provided work of inferior quality
  • Made mistakes or omissions


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. To learn more, or to get a free quotecall our Carrollton, TX office today at 972-492-8500.