Liability insurance and professional liability insurance are two types of insurance policies that provide coverage for different types of risks faced by businesses.
Liability insurance, also known as general liability insurance, provides coverage for third-party bodily injury, property damage, and personal injury claims arising out of daily operations of a business. This includes slip-and-fall accidents at a business location, damage caused by a product or service offered by a business, and other similar incidents.
On the other hand, professional liability insurance, also known as errors and omissions insurance, provides coverage for claims arising out of professional services rendered by a business or individual. This includes claims of negligence, errors, omissions or malpractice by professionals, such as doctors, lawyers, accountants, architects, engineers, and other service providers.
Whether a small business needs both types of insurance policies depends on the type of services offered by a business. If a business offers professional services, such as legal advice or medical treatment, professional liability insurance is typically necessary to protect against claims arising from such services. However, if a business does not offer professional services, but still has potential liability exposures, such as slip-and-fall accidents or product liability claims, then liability insurance may be necessary.
It is important for small business owners to carefully review their insurance needs and consult with an insurance specialist to determine the type and amount of coverage appropriate for their business. While insurance can provide valuable protection against potential risks, it is important to note that policies often have limitations and exclusions that should be carefully reviewed to ensure adequate coverage.
By