By The Hartford (Photo by Getty Images) Click here or call (248) 349-1122 to request a commercial Insurance Quote!As a business owner, it can be a challenge to figure out what types of insurance you need. The right policies depend on the types of risks your company faces. Big and small businesses both face liability risks, but the type of liability can change based on what you do. For example, a contractor might be liable if something they’ve built injures someone, where a consulting business might be liable for a client’s financial losses if they made a mistake in the advice they gave. Both of these types of liabilities can lead to a lawsuit. That’s where general liability insurance and professional liability insurance come into play. How General Liability Differs From Professional LiabilityThe main difference between general liability and professional liability is in the types of risks they each cover. General liability covers physical risks, such as bodily injuries and property damage. Professional liability covers more abstract risks, such as errors and omissions in the services your business provides. General Liability Insurance Definition and Risks CoveredGeneral liability insurance helps cover: Bodily injury claims:such as someone getting hurt at your business. This doesn’t include your employees’ injuries, though. Your workers' compensation insurance can help cover their work-related injuries or illnesses. Medical payments:If someone gets hurt on your business property. Property damage:Your business or employees cause. Reputational harm:If someone sues you for malicious prosecution, libel, slander, wrongful eviction, privacy violations and more. Advertising errors:If you face a lawsuit for copyright infringement in your advertisement. Who Should Take Out General Liability Insurance?General liability insurance is a good idea for most small business owners because it helps protect you from risks you face in many common business situations. This coverage is so important that we’ve bundled it as part of our standard Business Owner’s Policy (BOP). How Much Does General Liability Insurance Cost?Your cost of general liability insurance typically depends on many factors, including your:
To learn more about your business’ specific insurance cost, get a general liability quote. Professional Liability Insurance Definition and Risks CoveredProfessional liability insurance, also known as errors and omissions insurance, helps protect your business if your client claims financial damages from the professional service that you provide. Professional liability insurance can help cover business’ legal defense costs:
Who Should Take Out Professional Liability Insurance?Some states may require certain businesses to have professional liability insurance. For instance, healthcare professionals need medical malpractice insurance, which is a type of professional liability. You might have to carry professional liability coverage if your clients require it when you sign a contract. Regardless of whether you’re required to have it by law, it’s important to get the protection you need with professional liability insurance, especially if you work with clients or customers. Some examples of businesses that should carry professional liability insurance include:
How Much Does Professional Liability Insurance Cost?Businesses can make different mistakes. That’s why the cost of professional liability insurance varies from one business to another. Some general factors that can impact your professional liability cost include your:
Find out how much a policy might cost you and how this insurance can help protect your business by getting a professional liability quote. Original article shared here: Other Industries and products we specialize in at Insurance Exchange:Manufacturing InsurancePreschool & Daycare Center insuranceAutomotive Manufacturing InsuranceTool & Die Shop InsuranceStaffing Agency InsuranceFood and Agriculture InsuranceFreshwater Technology and Services InsuranceNon-Profit InsuranceCannabis Facility InsuranceInvestment Properties – Commercial landlord InsuranceHabitational/Hospitality InsuranceMedical Malpractice InsuranceElementary and Secondary (K-12) School InsuranceHome InsuranceCondo InsuranceRenters InsuranceMotorcycle InsuranceWatercraft InsuranceUmbrella InsuranceSmall Business InsuranceProudly offering General Liability & Professional Liability insurance in Northville, Ann Arbor, Canton, Detroit, Dearborn Heights, Garden City, Farmington, Farmington Hills, Inkster, Livonia, Novi, South Lyon, Southfield, Redford, Wayne, Westland, Wixom, Ypsilanti, Pittsfield, Scio Township, Michigan.Is professional liability covered under commercial general liability?General liability and professional liability insurance both protect against common small business liabilities, but cover two different types of lawsuits. You may need to purchase one or both policies depending on your risks.
What are the two types of professional liabilities?There are two types of professional liability polices: claims-made and occurrence. Most professional liability insurance policies are “claims-made,” meaning that the policy must be in effect both when the event took place and when a lawsuit is filed for a claim to be paid.
What is the difference between commercial general liability and general liability?General liability insurance helps protect you from claims that your business caused bodily injury or property damage. It can also protect you if someone sues you for advertising injury. Commercial property insurance covers your business' physical location and equipment, whether you own or lease it.
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Difference between general liability and professional liability
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