Having commercial general liability insurance protects your business against claims that pertain to bodily injuries, advertising and personal injuries, and property damage. This can protect you in the event a customer visits your business and is accidentally injured. Moreover, it protects you in the event your employee were to cause accidental damage to a customer’s property. For example, if an employee accidentally leaves the water running at a customer’s home and flooding results, your business is liable.
The professional liability insurance, also known as indemnity insurance helps to protect businesses that exclusively offer services or advice rather than physical products. This may include counseling, installations, and other such services. Service work can result in lawsuits claiming errors and oversights, contract breaches, and incomplete work.
The insurance protects you by covering your legal fees for your defense, settlements, and court fees. Businesses in the service industry are highly advised to have professional liability insurance because a customer doesn’t have to prove fault in order to file a lawsuit. It can be costly without having this policy in place, even if your company knows it is not at fault.