Do I Need Professional Liability Insurance or Just General Liability Insurance For My CA Business?

October 16, 2013 – Orange County, California

For the most part, insurance is founded on the principles of protecting a company or an individual from various perils. Those perils can range from property destruction to burglary to one of many major catastrophes that could happen. The one question we a lot from our Orange County, CA clients and prospects is do I need professional liability or will be General Liability Insurance be enough? Each type of insurance is different and depending on your particular business both options should be explored.

General Liability Insurance

Liability is anticipation to some businesses since a company is accountable for so many things just by merely conducting business everyday and the sale of its products or services. Please note that these liabilities are not limited to your premises, owned or operated, and activities, but also for any injuries or property damage that may occur due to a faulty product or if you provide a service to customers and vendors.

Where as property and business earning exposures which are limited to the values of the property or income there is no limit on liability claims. This unfortunately can lead to all kinds of potential pitfalls. Virtually it’s impossible to forecast all that could happen due to the sale of one of your products or a professional service you had provided. Therefore it would be wise of the business owner to carry both professional liability insurance and general liability insurance as both can be instrumental in protecting the interests of the business.

Unlike property and business earning exposures which are limited to the values of the property or income, there is no limit on liability claims. This, unfortunately, involves a widespread assortment of potentials. Unfortunately, it’s virtually impossible to foresee everything that might occur as an outcome of the sale or conducting of professional services. Professional liability insurance and general liability insurance are consequently necessary in defending the interests of the business.

So Which Insurance Policy Do I Need?

Most companies in Orange County, CA will find that both General Liability and Professional Liability will fit most of their protection needs. Having a knowledgeable insurance agency navigate you through all interties of the different polices can help your company pick the right policy that will fit your needs and protect your business interests.

Having Professional liability coverage can provide a much wider scope for failure to render a certain type of professional service. The majority of the time the loss will be monetary versus physical. As a result therefore say a skilled service that like an architect would be expected to carry out their business in certain manner and adhere to a strict code of conduct for their profession. If an architect chose not to follow these set standards of conduct, the architect could be held accountable for harm or recompenses. No matter what field you may pick, tax accountant, real estate agent or an architect adhering to your industry standards could save you from a lawsuit.

Orange County, CA professional liability insurance is extremely important for a business since it will insure the incidental costs of your conduct. One example is either you or an employee giving a client a call, giving that client some advice which can leave vulnerable to a professional liability claim and those claims can be quite costly. The first and foremost thing that professionals need to remember is giving advice or performing a service they need to be very careful that a law suite will not follow because of their actions. This is where having the appropriate insurance coverage in place can save you and your company from potential financial ruin.