How to Choose between General Liability and Professional Liability Business Insurance in Texas
A Breakdown of Each from the Dependable Brokers at The Nowell Agency
Owning and operating a business has many risks. One huge risk that can hit any business is when a customer or client sues you. Yes, it is likely to occur. The good news is that when you have the right policies in place, you experience little to no out-of-pocket expenses. Deciding what kind of coverage you need is a bit tricky and may make you want to throw your hands in the air.
Get help deciding on the best type of business insurance you need for your Texas company. The staff at The Nowell Agency works with small businesses, entrepreneurs, and self-employed individuals, regularly. We understand that each enterprise is unique. We strive to give you the best plan for your situation while helping you fill in the gaps to shore up your protection.
General vs. Professional Liability – A Breakdown of Two Common Types of Insurance
You may have heard the terms, but you don’t know what they mean. General liability and professional liability can safeguard your business in different ways. Here is a basic breakdown:
- General Liability: This is the most basic and probably the most popular type of insurance coverage. Just about every kind of business should have this policy as it protects them from third-party claims. That is when someone else blames you or your employees for injury or damage. It covers three main categories, such as property damage, bodily injury, and personal and advertising injury. Here are a few examples of liability and risk that can occur:
- Your employee damages a customer’s deck when they drive a mower into its side.
- A client comes to your office to discuss a potential project. When they get ready to leave, they trip over a loose rug and injure their hand.
- An employee is overheard making false and disparaging statements about a previous customer. The comments get back to that person, and they sue for slander.
- Professional Liability: You may have heard the term E&O, which stands for errors and omissions. It is another name for professional liability. If you provide professional services such as consulting, this coverage can help. It steps in when you do something you shouldn’t have (an error) and when you didn’t do something that you should have (an omission). It can also help in instances of personal injury as well as claims of libel and slander. Here are some examples of situations that may arise:
- You failed to provide adequate instructions to your client, and they hold you responsible for the financial damages they experienced.
- There is an actual error in the work you provide but it is not covered in regular general liability.
- You accurately described your products, services, and prices, yet, the client’s expectations were not met.
Keep Your Company Protected with Business Insurance in Texas from The Nowell Agency
Protection comes in many forms, and insurance is one of them. Don’t leave your company vulnerable to lawsuits when you can work with the dependable brokers at The Nowell Agency. We have over 30 years of experience to ensure you are covered. Give us a call today and learn how we can work together to safeguard your livelihood.