If you are a small business owner, you always need some kind of protection to safeguard yourself and your business. You might think you have everything under control. But even a single misfortune can be baleful. To avoid anything like that it is advised to have professional insurance coverage. Read further to learn more.
This blog will help you understand the importance of general liabilities. Having liability coverage signifies a level of authority which can reduce some of the concern about your business. There are so many different policies that take care of the rights of both owners and clients and the claims made by either one of them. In this we will discuss General Liability Insurance and Professional Liability Insurance. Being an owner of any kind of business you need to represent your business in the best way. You have to represent yourself as reliable and answerable. General Liability Insurance, you can be at ease knowing that you have protection against unexpected incidents.
General Liability Insurance (GLI) is designed to defend you and your business from claims involving bodily and property injuries resulting from your business. Purchasing insurance shows that you are well aware and understand the risks involved in your business. Here are few benefits of having General Liability Insurance.
1) Protection against bodily injury claims:
- At your business place, if the client trips over your tools or equipment and hurts his leg or hand. The client might sue you for his injury. But if you have General Liability Insurance, there is nothing to fear about.
2) Protection against property damage claims:
- Many accidents can happen at the site like bodily injury. Another damage that can commonly occur is, if at work site the worker accidentally drops the tool and it causes damage to the newly laid wooden flooring of the property. The client can charge you for the damage. So in that case the GLI will cover it all.
3) Reputational Harm:
- As a business owner, you have to make sure that you maintain the reputation of your business and gain the trust of the clients. Depending upon your venture, the client may require you to have a GLI certificate.
Apart from the coverage provided by the General Liability Insurance. There are certain things that are not covered in the general liability insurance like employee injuries or any illness. For such claims there are other insurance that you can opt for. This insurance doesn’t give a claim for the error or the omissions your company provides.
There are other claims that are not taken into account of the GLI. Claims like loss suffered by the client because of the professional advice or service they received from your firm.
These type of declaration usually happens in the business profession like engineers, consultants, counselors, real estate companies etc. Such business requires Professional Liability Insurance that delivers professional services or gives professional advice to the customers buying this liability insurance.
Professional liability Insurance is also known as Medical malpractice insurance or error and omissions insurance, based on the profession. PLI imparts protection when the owner is sued because their work or services doesn’t meet clients expectations, incorrect advice or failing to deliver a service. The biggest advantage of PLI is that it can save your business expense if you have to make a claim when sued by a client.
In case you don’t have the PLI, you will be asked to pay fine and legal fees Coverage in liability insurance is good if availed during the policy period. Incidents that occurred before buying policy will not be covered in the policy.