Do I Need General or Professional Liability?

Do I need general or professional liability?
The main difference between general liability and professional liability is in the types of risks they each cover. General liability covers physical risks, such as bodily injuries and property damage. Professional liability covers more abstract risks, such as errors and omissions in the services your business provides.
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Determining the sort of insurance coverage you require to safeguard your company against potential threats is one of the most crucial decisions you’ll make as a business owner. General liability and professional liability are two of the insurance categories that are most frequently mentioned. Insurance for general liability:

Insurance against third-party claims for bodily harm, property loss, and advertising injury is provided by general liability policies. This kind of insurance covers any harm brought on by your goods or services as well as any mishaps that take place on your property as a result of your operations, including slip-and-fall mishaps. Insurance for Professional Liability: Claims made against your company for professional errors, omissions, or carelessness are covered by professional liability insurance, sometimes referred to as errors and omissions insurance. For companies that offer professional services, like accountants, attorneys, and consultants, this kind of insurance is extremely crucial. Is Employers Liability Insurance Required for My Wife? You are not needed to acquire employers liability insurance for your spouse if you are a solo entrepreneur. However, you must carry employers liability insurance if you have any employees, including your spouse. This kind of insurance protects against claims made by workers who are hurt on the job or are ill as a result. What is the Employers National Insurance Rate? In the UK, there is a tax on employers called Employers National Insurance (NI). Employers National Insurance is figured as a portion of the employee’s total income. Employers’ National Insurance is now levied at a rate of 13.8% on income above the secondary level. Currently, the secondary threshold is £170 per week, or £8,840 annually.

In conclusion, it’s critical to carefully assess the kinds of insurance coverage you need as a business owner to safeguard your enterprise from potential threats. While professional liability insurance covers claims brought against your company for professional errors, omissions, or carelessness, general liability insurance protects against bodily injury, property damage, and advertising injury. You must carry employers liability insurance if you have workers, including your spouse. This insurance protects you from lawsuits brought by staff members who are hurt on the job or fall ill as a result of it. The final factor is employers’ national insurance, which is computed as a percentage of an employee’s gross pay at the moment (13.8%).

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