General liability and professional liability are in fact two distinctly different types of insurance, but both can be invaluable to business owners depending on the types of risks they may face. If you are a business owner operating in Colorado, Utah, Wyoming, or Idaho, keep reading to find out why our business liability policies might be right for you.

Why Liability Insurance Is Crucial

whether you have a sizable business, a small business that only employees a few people, or are an independent contractor, every business owner faces potential liability from a number of fronts. A lawsuit filed following even a minor infraction could cause enough financial hardship to put you out of business for good.

This is why every entrepreneur needs thorough and comprehensive coverage against any potential liability they could face in their particular type of business. Many business owners may find that they need more than one type of liability insurance to keep themselves fully protected.

Professional Liability Insurance

Also known as errors and omissions insurance, this type of policy will protect you from financial losses that arise if a client claims damages from a service that your business provided. This could include work mistakes or oversights, undelivered services, a missed deadline, or general negligence.

Who Needs This Type of Insurance?

Some states require certain businesses to have this type of liability insurance. Lawyers, accountants, and home inspectors are just a few examples of professionals who need to be insured in most states. Some clients might also require you to be insured before you sign a contract. Even if it not required by law, anyone who provides professional services to clients would certainly be remiss in not investing in this type of liability coverage.

General Liability Insurance

While this insurance policy does not cover physical injury claims made by employees (you need workers' compensation insurance for that), it will protect you against any claims made by visitors, clients, or customers. This insurance not only covers your legal costs, but also pays the medical expenses of the injured party.

If you or an employee cause damage to a client's property, or face a lawsuit related to slander, libel, privacy violations, copyright infringement, or wrongful eviction, these are also situations covered under this policy. As you can see, it truly is “general” and can protect you in a wide variety of circumstances.

Who Needs This Type of Insurance?

A general policy is not required by law but it is a good idea for just about any business because it covers so many bases. Certainly if you deal with clients or customers, own or lease commercial space, or produce intellectual property, it makes a lot of sense to have this risk management tool in your corner.

Finding the Right Insurance Provider in Colorado, Utah, Wyoming, or Idaho

It is important to find an insurance expert who is familiar with the state laws and insurance requirements in the place where you do business. Make sure you do your research to find a provider who has expert knowledge of business insurance and an understanding of the type of liability coverage you need in your particular market.

If you would like more information on liability coverage or wish to request a quote, contact us today at Society Insurance Network!

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