Liability insurance is otherwise known as being errors and omissions insurance. In some instances, it’s also called malpractice insurance, depending on the industry that you work in. Of course, it’s important to know that a lot of small business owners can benefit a huge amount from this type of coverage and this is because it can protect you from a range of problems. Some of them include failure to uphold any contractual promises and even providing work that is incomplete or substandard.
You Don’t Always need to Be at Fault
At the end of the day, you don’t have to be at fault in order to be sued. An unhappy client could easily name your business in a lawsuit and this can cost you dearly either way. Your professional liability insurance policy will ensure that you really don’t have to pay any legal expenses, regardless of whether or not the claim is valid so this is a great option that you can take advantage of.
How are General Liability and Professional Liability Similar?
Both policies deal with liabilities that would otherwise be unavoidable. It really is a somewhat unfortunate fact of dealing with a small business. Small business owners tend to deal with issues all the time so it helps to have two policies that will work with one another so that if accidents do happen, you can help to mitigate them as much as possible. Both of the policies mentioned above will be required by your clients in order to close contracts. You should never be surprised if a general contractor requires you to have your own general liability or even worker’s compensation insurance.
How are the Two Different?
It’s so important to know that general liability can spare your business from a lawsuit and it will also stop you from being to blame if a visitor happened to slip and fall. Professional liability on the other hand can really help to shield you from the high cost of making professional mistakes that would cause another party a degree of loss.
General liability will cover you for physical damages but professional liability will cover you for financial damages. This coverage protects you from lawsuits over any finished work that may or may not end up harming someone. The coverage can be taken out for as long as you need, and different providers will be able to offer you different degrees of cover. If you are not quite sure how to take out a level of cover or if you want to find out if it is possible for you to change your cover then the first thing that you need to do is talk with your provider. When you do, they can then work with you to make sure that you get the support that you need and you can also count on them to give you the right policy too. If you want to find out more then you need to contact your provider today.