Any company that sells goods or services must have general liability insurance. It shields companies against monetary losses brought on by property damage, bodily harm, and advertising harm. The topic of whether general liability insurance covers errors and omissions (E&O) comes up frequently, though.
Errors and omissions insurance, commonly referred to as professional liability insurance, serves as a defense for businesses against lawsuits resulting from the provision of professional services. It covers allegations of carelessness, mistakes, and errors that could cost clients money. While errors and omissions insurance and general liability insurance may appear to be identical, they are two different kinds of insurance.
Errors and omissions explicitly are not covered by general liability insurance. It includes claims for physical harm, material loss, and harm to advertising. A company must obtain a separate errors and omissions insurance policy to cover the costs of fighting the claim and any damages that may be awarded if it is sued for errors and omissions.
The short answer is no, general liability insurance does not cover incidents brought on by someone else operating your vehicle. Your auto insurance policy covers incidents that are caused by someone else driving your vehicle. If the other driver was at fault, the losses would be covered by their insurance. However, your auto insurance policy would take effect if they did not have insurance or if their insurance was insufficient to pay for the damages.
Public liability insurance is distinct from general liability insurance. Businesses are protected by public liability insurance from claims of third-party property damage or bodily injury. It is comparable to general liability insurance, but it is tailored more for companies that deal with the public. A wider range of company risks, such as advertising harm, contract disputes, and other obligations, are covered by general liability insurance.
It is crucial to understand that a general liability coverage has exclusions that must be adhered to. For example, it does not cover employee injuries, malicious harm, or physical damage to the business itself. As a result, companies should carefully analyze their policies to determine what is and is not covered.
In summary, general liability insurance is an essential protection for companies. Errors and omissions are not covered, and firms will need a different insurance coverage for such. Additionally, companies should be aware of the restrictions in their general liability insurance policy and, if necessary, look into supplemental insurance. Finally, having business insurance can benefit a company by offering financial security against unforeseen occurrences and reducing the risks involved in operating a firm.