Business owners who purchase general liability insurance may ask why Carmel professional liability insurance may also be needed for full business insurance coverage. These two types of insurance policies cover very different risks to the business.
General Liability Coverage
Because the risk of even one claim to the uninsured business can be devastating, many business owners purchase general liability insurance. This type of insurance typically covers risks to the business itself, the employees, and the property owned by the business. Coverage may include legal fees and any costs associated with defending or settling a lawsuit against personal injury or property damage claims.
Professional Liability Coverage
Also known as errors and omissions insurance, professional liability insurance relates to the professional services provided by the business. Claims made against this type of insurance coverage are often financial in nature. The claimant may state that the business professional did not act according to a professional code of conduct, or that there were negligent acts committed by the business owner or representative.
Business Risk Management
Given how common frivolous lawsuits are today, it may be prudent for a business owner to consider options for Carmel professional liability insurance coverage. Carefully assessing business risks and financial repercussions should a claim be filed against one’s company can be an important piece of the overall risk management strategy.