Written by: Lindsey Lessard Director of Client Services, Broker Representative for Alternative Balance
Running a business comes with risks – some are common amongst all types of companies, while others are unique to each individual business and their operations. Due to this, it’s very important for all business owners to understand what types of insurance they should have. This includes various types of liability insurance, but what should you consider and why are they so important for businesses to have?
Alternative Balance members get 2 different types of liability coverage in their policy which we take a deeper dive into!
What is General Liability?
General Liability protects you and your business from bodily injury and/or property lawsuits filed by individuals who are not employed by your business. This can be individuals such as clients, vendors, etc. Coverage includes allegedly negligent operations, premises, products, completed operations, or advertising.
Why is General Liability important?
This coverage is important as it covers incidents that are typically considered accidental or acts of negligence on your part as a business owner. These incidents are typically not a result of your professional services but occur within the scope of your business premises, or if you work remotely, wherever you are actively working with a client.
More businesses than ever before are operating remotely or outside of a typical office or premises now. Due to this, the risk for 3rd party property damage has increased. This can include items such as facility damage and repairs.
General Liability is also required by most landlords if you lease space and/or lenders if you have a business loan.
What are some claim examples?*
The most common example of a General Liability suit is an accidental slip-and-fall on your premises, which would be considered bodily injury. Another example of bodily injury might be if you were doing hair at an assisted living facility and someone trips over your rolling cart and is injured.
If you temporarily rented out some added space and damaged it during the course of your work, this would be considered 3rd party property damage and fall under General Liability.
What General Liability limits are offered to Alternative Balance members?
The General Liability limits offered to all Alternative Balance members are listed below:
$3,000,000 General Liability Aggregate
$2,000,000 Products/Completed Operations Aggregate
$2,000,000 General Liability Each Occurrence
$300,000 Damage to Rented Premises
$5,000 Medical Payments
Additional information about each of these coverages and sub-limits can be found on the Alternative Balance website.
What is Professional Liability?
Professional Liability is an incredibly important coverage for a business to buy as it extends coverage to wrongful acts that arise due to professional advice. This includes breach of duty, neglect, error, omission, misstatement, or a misleading statement.
Why is Professional Liability important?
Professional Liability coverage is important because it protects you and your business for damages resulting from any professional advice that you give. This is what creates trust between you and your client, and the professional advice that you offer is arguably the most important part of your business operations.
What are some claim examples?*
A few possible Professional Liability claim examples are:
If you programmed a workout and were accused of poor advice/instruction that led to an injury.
If you advised someone to use a certain type of moisturizer that caused them to have an allergic reaction.
If you gave a tarot reading to someone and they claimed that your reading resulted in bodily injury from lifestyle changes implemented as a result.
What Professional Liability limits are offered to Alternative Balance members?
The Professional Liability limits offered to all Alternative Balance members are listed below:
$3,000,000 Professional Liability Aggregate
$2,000,000 Professional Liability per Occurrence
Takeaways
Both General and Professional Liability work in tandem to protect you from all sides. Each works in their own ways to keep your business operations and assets safe. Ensuring that you have these protections in place is an easy way to work smarter, not harder. Alternative Balance makes it easier than ever for you to focus on your business while we manage the insurance!
*Please note that all claim examples are just that, examples. Any and all claims would need to be reviewed by a claims adjuster to determine eligibility.