Several options are available to small businesses looking for insurance. Commercial property insurance to cover your business property and workers’ compensation insurance to protect your people are among two of the more critical coverages that should be in any policy. Just as important is liability insurance. Here’s what you should know about two of the most popular liability coverages.
Liability Insurance Defined
Liability insurance protects you in case you are the subject of a third-party lawsuit. According to the experts at Axis Insurance Services, your policy will cover the expenses related to such a case including your attorneys’ fees, judgments or settlements. Maybe the two most popular forms are a general and professional liability.
General Liability vs Professional Liability
General liability insurance protects you in instances where a third party claims that they sustained an injury or property damage because of your business activities. Examples of this include a visitor hurting themselves in your office from a wet spot or damaging their car in your parking lot due to unfinished pavement.
Also known as errors and omissions insurance, professional liability offers coverage against lawsuits where a third party claims to have suffered a loss because of an error or omission on your part. An example of this is a client claiming to have suffered financial losses because you didn’t live up to your end of a contract.
Your level of coverage will depend on your business needs. Work with an experienced agent to build a policy that’s right for you.