You know you need general liability insurance for your company. It covers you when a third-party is injured or suffers damage while in the course of doing business with you, on or off company property.
Because of the name, you’re not alone in thinking that the coverage itself is, well, general and covers a lot of possibilities. For the most part, it does, but there are certain instances when your general liability insurance coverage won’t be enough.
Damage to Your Business Property
While property damage is included in general liability, that doesn’t include your property. General liability pays when a third-party suffers property damage caused by your business in some way.
Your business property can be damaged in any number of ways: theft, vandalism, fire, storms, and more. To protect yourself, you need commercial property insurance. This will cover your equipment, inventory, buildings, and signs.
Damage to Company Vehicles
Just as with business property, your general liability insurance doesn’t take care of damage to your company vehicles. It pays for damage made to a third-party’s vehicle if you’re found liable for their damage.
If you have a company vehicle, or a vehicle you use for business-purposes, you need a commercial auto insurance policy. Any vehicle you drive for work-related reasons should be included on the policy, even if it’s your personal vehicle. The coverage is more robust, and it offers its own liability coverage in case of an accident.
Injured or Sick Employees
You may be liable for the injury or illness of an employee, but that’s not covered under your general liability policy. Employees are not included in this form of coverage.
You need, and are likely required by law, to purchase workers’ compensation insurance. This will help pay the medical expenses for an employee who is injured or becomes ill on the job. It also pays lost wages and covers you if the employee decides to sue.
Your Professional Mistakes
No matter how hard you try to prevent them, mistakes happen because you’re human. But as a professional, your mistakes can cost someone else money, time, or their reputation. Yes, you’re liable for those mistakes, but your general liability policy isn’t going to help you here.
To protect yourself and your business from the mistakes you’re bound to make, you need Errors & Omissions also known as Professional Liability coverage. You’ll be protected against claims for negligence, unkept promises, and/or errors/mistakes you make while working with a customer or client.
If you’ve purchased general liability coverage for your business, that’s a great first step, but it’s just the beginning. To really protect your company and yourself from multiple forms of liability, you’ll need more coverage. Contact us at Charlotte Insurance today to learn what insurance is best for your business and to get a free estimate.