The Difference Between General Liability And Professional Liability Insurance
August 21st, 2011 | 
Author: Article by Miles Henry
If you are a professional in the state of New York, it is important to consider investing in professional liability protection. Professional liability insurance, also commonly referred to as errors and omissions insurance, is a specialized form of commercial liability protection that protects a business or an individuals if a client accuses your company or yourself of an error that caused financial hardship. Many business owners recognize the importance of general liability protection. While these business owners recognize the importance of general liability insurance, they fail to recognize the importance of protecting their professional reputation with professional liability insurance New York. Understand the differences between general and professional liability and determine whether you need this specialized form of insurance.
General Liability Insurance
General Liability protection is included in all Business Owner Package policies. This coverage will protect you if a third-party individual is injured on your property and they claim you were negligent for their injuries. General liability will also provide coverage for property damage. The policy will pay for damages, medical bills, and your legal defense if you believe the claims are fraudulent or unfounded. General liability protection has a long list of exclusions that you should make yourself aware of.
Professional Liability
Professional liability insurance New York is not simply an extension of General Liability. It is actually designed to cover an entirely different area of your business. General liability policies specifically exclude coverage for errors, contract performance disputes, or any other issues relating to professional liability. If you operate without professional liability protection and a client claims, you made an error causing them thousands of dollars of financial loss you are taking on a serious risk. This specialized form of liability insurance will provide monetary compensation in these types of situations. Like general liability, it will also pay for the cost of legal defense if a claim is unfounded.
Who Needs Professional Liability
Professionals in all industries should carry errors and omissions insurance. If you have received special training or post-secondary education to work in your industry, you have a need to carry this form of insurance. Any professional that is held to a higher standard in their industry can be accused of making a mistake. Make sure you protect your reputation by carrying the proper type of insurance.
For most professionals, professional liability insurance New York is very affordable. If you are employed in a higher risk position, you may pay more than a professional that assumes little risk. It is important to compare quotes, exclusions, and additional endorsement options. When you build a comprehensive errors and omissions insurance policy, you can operate with peace of mind and protection. Contact your commercial agent and request a quote today.
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