For small business owners, especially new ones, exploring options for insuring your business can seem daunting, and it can be tempting to put it off to handle more immediate matters. However, risks are inevitable, so knowing how to manage them is key. This begins with understanding general liability versus professional liability in the context of obtaining coverage.
What is General Liability?
As the name suggests, general liability insurance provides coverage for many of the risks common to running a business, independent of the services offered. From injury and property damage to managing copyright infringement cases, this insurance covers the expenses associated with lawsuits, protecting small businesses from going under because of an accident or injury.
What is Professional Liability?
Professional liability, on the other hand, involves the litigation costs that can come up due to the services that a business provides specifically. This can include misplaced or erroneous paperwork, lost or stolen goods or other errors that damage a client and prompt a lawsuit. This insurance can help carry the burdens of preparing a defense against lawsuits to give business owners room to focus on other tasks.
What Works Best?
Though they sound similar on the surface, it’s not a matter of choosing one or the other between general liability versus professional liability. Both are valuable for protecting your small business, and both can vary in specifics between insurers; take the time to conduct further research and find the right policies for you.