My name is Eric Bowman, and if you have questions about insurance, this is the blog you need to read. I was always confused when I had to purchase insurance. I would either end up paying for insurance I didn't need or I wouldn't buy the right policy. I finally decided that I was going to learn all I could about insurance policies so that I would understand exactly what I was buying. Now, I am completely satisfied with my insurance and the coverage is just what I need. I realized that there are others who are probably just as confused as I was, so I am writing this blog to help others get the best insurance for their needs and budget. I hope that my blog gives you the information you need to make the right choices when purchasing insurance.
If you own a business, you are wise to begin checking out your business insurance options. In fact, you may have been told that you need professional liability insurance. Many businesses benefit from holding this kind of policy.
If you have questions about liability insurance for companies like yours, there are a few things you need to know before you buy a policy.
Professional Liability Insurance Covers Claims of Negligence
This kind of policy covers you if you are accused of making a mistake in your work or giving incorrect advice. It can also provide protection if you are sued because one of your products failed and caused damages.
If somebody accuses you of negligence, you will have to spend a lot of money defending yourself in court. If you lose the case, you may have to pay damages. Professional liability insurance can help you cover those costs so they don't put your business at risk.
This Insurance Is Not the Same as General Liability Insurance
Liability insurance for businesses typically falls into two categories: general liability and professional liability. It's important not to confuse the two, because they are very different.
General liability insurance covers you if somebody is injured on your property or if you damage someone else's property. It does not cover you for any claims that arise from the work you do or the products you sell.
You Need This Insurance If You Give Advice or Provide Services
If your business provides any kind of advice or service, you need professional liability insurance. This is true whether you are a consultant, a financial advisor, a web designer, or any other type of professional.
You may think that your business is too small to need this kind of coverage. However, even if you are a one-person operation, you are still at risk of being sued for negligence. If you have any clients, you need to be protected.
You May Need This Insurance Even If You Have Homeowners Insurance
Some people think that their homeowners insurance will cover them if they are sued for negligence. However, this is necessarily not the case. Homeowners insurance typically does not cover business-related activities.
If you work from home, you may need to purchase a separate policy or rider to your homeowners insurance to make sure you are protected.
Ask a Business Insurance Professional
The best way to find out if you need professional liability insurance is to speak with a business insurance agent. He or she can assess your risks and recommend the right coverage for your business. Reach out to a company such as Heaton Insurance to find out more.