When people talk about liability insurance, they either talk about general liability insurance or professional liability insurance. Both types of insurance fall under as liability insurance yet they are actually very different from each other. Nevertheless, both type of liability insurance are protection from your source of income – either from business or from profession.
Getting sued by third parties due to negligence, injury, or just total dissatisfaction is something you would not want happening with your source of income. Not only are they financially damaging, but they can also ruin the operations of your business or profession. If you are equipped with liability insurance, the financial expense will be covered by your insurance company, provided that the liability claims being made is within your insurance policy.
General Liability Insurance – this type of insurance is the most basic and is the most necessary type of insurance for all businesses to have. Although there are different policies available under this particular type of insurance, the most common general liability insurance to have is the commercial general liability insurance. Basically, what this insurance policy does is provide coverage when clients or customers get injured within the business premise. Depending on the policy and exclusions, it may also provide coverage on damages or injuries incurred by employees while working at a client’s site.
Professional Liability Insurance – this type of insurance is something that all professionals should. Doctors, medical professionals, healthcare professionals, engineers, architects, accountants, and all those who provide professional services should have this type of insurance as it provides them with the necessary protection against malpractice, and errors and omissions they may have incurred while performing their professional duties. Any mistake on the part of the service they provide may incur legal actions, particularly if the mistake happens to be damaging, life-threatening, or incurs loss of finances. Having professional liability insurance protects them from the expenses brought to them by claims and lawsuits. Not having the protection of this type of insurance may not only lead to staggering amounts of financial loss, but it may also lead to the revocation of the professional license if settlements are not clearly paid for.
When it comes to having a business or practicing a profession, it is important to be equipped with the necessary insurance that provides you with protective coverage against any lawsuits that may be held against you by your clients.