Whether you’re running a large corporation or a small sole-proprietorship, you need to protect your business with the right kind of insurance. As a business owner, you prefer to focus on the positive aspects of running your business, but you also have to be prepared for when things go wrong. The right kind of insurance coverage can save you and your company from litigation and other potential company-ending catastrophes. Understanding the benefits of professional liability insurance vs general liability insurance is the first step towards adequately insuring your company.
Professional liability insurance also goes by the name of Errors and Omissions coverage. When your company makes mistakes in the course of providing your business’ services, professional liability coverage protects your business from any resulting litigation. An example of the what this coverage protects against is if a client of yours brings legal action against your business because your company lost their paperwork.
General liability insurance protects your business from the common legal risks that come from running a business. Some of the typical items covered by this kind of insurance are tort liability from bodily injury, medical payments or slander that occurs either on your business property or during the course of regular business operations.
When you know the difference between professional liability insurance vs general liability insurance, you’re capable of ensuring your company has the proper insurance protection.