Purchasing adequate commercial insurance is among the costs that a business shouldn’t skimp on. However, when it comes to general liability and professional liability, most enterprises in Arlington, TX, purchase only one of the options. At Strack Insurance Services, we suggest you familiarize yourself with general liability and professional liability before deciding which to buy. Here’s a breakdown of your commercial policy’s general and professional liability coverages.
What is general liability vs. professional liability?
General liability insurance protects against claims made by third parties such as clients alleging that they suffered physical harm because of your business or its negligence. On the other hand, professional liability is an error and omissions insurance that protects against claims of financial loss due to oversights, negligence, and errors related to your professional services.
What is covered in general liability vs. professional liability?
General liability coverage takes care of:
- Bodily injury claims like when a customer gets hurt on your business premises
- Medical payments for the injured customer
- Damage to a customer’s property on your business premises
- Reputational harm in case you are sued for slander, privacy violations, malicious prosecution, libel, and wrongful eviction.
- Advertising errors
Professional liability takes care of business legal defense and settlement costs associated with:
- Clerical errors that cost clients thousands of dollars
- Missed sales opportunities for your clients due to delays on your end as the manufacturer/supplier
- Penalties to your clients due to inconveniences caused by you
Who needs general liability vs. professional liability?
General liability coverage is a must-have for all small businesses. Lawyers, law firms, technology professionals, home inspectors, accountants, tax preparers, and consultants need professional liability coverage. However, health care professionals need medical malpractice insurance, a form of professional liability insurance. Most large-scale enterprises need both general liability and professional liability insurance.
Are you seeking customized commercial insurance in Arlington, TX? Contact Strack Insurance Services for unrivaled professional assistance.