As a New Hampshire business owner, you understand the importance of safeguarding your company against potential risks and liabilities. You hopefully already have general liability insurance, but this probably isn’t the only liability coverage you need if you provide professional services. Attorneys, accountants, advisors, agents, and others usually need professional liability insurance too. Here’s why each is important.
Why NH Businesses Need General Liability and Professional Liability Insurance
What Commercial General Liability Often Covers
Commercial general liability insurance can protect a business from claims that cause bodily injury and property damage to others. Coverage can vary depending on the policy's terms and conditions, but many commercial general liability policies cover the following.
1. Common Accidents
Common “slip and fall” accidents where a third party is injured. So, too, are common accidents where a third party’s property is damaged.
Covered accidents may include those occurring on your business’s property (on-premises coverage) and those occurring off your business’s property (off-premises coverage).
If someone slips on a wet floor in your office, a commercial general liability policy would likely cover the claim. The same would probably be true if someone trips over a power cord you use at the client's location.
As anyone can be accused of an accident, general liability is critical to protect a business whether you visit clients offsite or work from home. (Even home-based businesses need items delivered or to interact with the public in a business capacity.)
2. Defamation Claims
Should someone within your company be accused of slander (spoken) or libel (written) while employed, the general liability policy would likely cover the defamation claim. This might include unjustly deriding a competitor's competency or making false statements about another entity.
3. False Advertising Claims
False advertising claims may also fall under coverage from a commercial general liability policy. These types of claims can include misleading customers through advertising.
With all the coverage provided by a general liability policy, it may seem like that is all your business needs for coverage. However, this is not true, especially if you work in professional services.
The difference between General Liability and Professional Liability Insurance
As noted, general liability insurance protects against physical loss; however, if you offer professional services, the greater risk is often not physical but rather from your actions as a professional.
Protecting against professional errors and omissions
Professional liability insurance is so named because it primarily covers risks associated with offering professional services. These are commonly referred to as errors and omissions, and there are several sorts of claims that professional liability might cover:
- Negligence
- Breach of contract
- Personal injury
- Copyright infringement
- Other errors
For instance, this coverage might apply if a client claims they’re negatively affected by sub-standard work you complete. They also might claim that you gave errant advice, failed to meet contracted requirements, or made any number of other mistakes that directly cost the client. These are errors that almost any professional could be accused of.
What if I only have general liability insurance and not professional liability?
Claims related to professional mistakes usually aren’t covered by general liability. That’s why you normally need both general liability insurance and professional liability insurance when offering professional services.
Properly protect your business and yourself
General and professional liability are two important protections you likely should have if you work in any professional capacity. This could include working within a certified role, providing white-collar services, or even other work where you offer customers advice.
For more information about NH Professional Liability Insurance, don't hesitate to contact the agents at HPM Insurance.
