Professional Liability Vs. General Liability


<Roofing Contractor InsuranceProtecting a business against potential liabilities due to mishaps and untoward accidents is one of the many obligations entrusted upon entrepreneurs. To avail favorable contractor insurance quotes, purchasing a contractor insurance policy that safeguards the establishment against dangers applicable to the nature of their business and its operations is necessary.

A couple of products offered by multiple insurers include professional liability insurance, and general liability insurance. Before purchasing any of these policies, it’s important to understand the difference between the two, and decide which of the two is most applicable.

The first product mentioned in the paragraph above is also known as errors and omissions (E&O) insurance, and is often used by real estate agents, lawyers, architects, travel agents and other professionals or organizations reliant on contracts for their dealings.

E&O basically offers the insured client protection against contractual financial hardship. Policies of this nature extend coverage to service providers who unintentionally include or exclude details which cause financial hardship to one of the listed contractual parties.

Typically, an E&O contractor insurance policy’s limitation is set to $1 million per claim, and features an annual aggregate payout of $2 million. This means that the insured can be covered against two $1 million claims placed against him or her per year.

On the other hand, a general liability shields the insured against property damage or bodily injury caused by the company’s employees to others. However, it doesn’t cover any form of financial hardship inflicted to the victims.

When it comes to purchasing any policy for the first-time, it’s important for business owner to assess the establishment’s insurance first. The level of risk involved with commercial operations is one of the biggest things to consider, especially for organizations belonging to the construction industry.

Insurance companies essentially consider the level of risk associated with the prospective clients, and charge premiums accordingly. Payments are also dependent on how extensive the policy’s coverage is, so businesspeople should reconsider availing contractor insurance policies which include protection against risks that aren’t applicable to their businesses.

To ensure ample coverage is acquired, and the best contractor insurance quotes are availed, consumers are advised to do thorough comparison shopping before ultimately making the purchase. Alternatively, consumers may hire the services of an insurance broker – a professional that’ll contact multiple local insurers, and bargain for the best possible quotes on behalf of their clients.

photo by: Haags Uitburo

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