Question

If you owned a small business and wanted to purchase insurance, which type of insurance would you buy: professional liability, general liability, or a comprehensive plan that includes both? Be sure to explain your answers.

Answer 1

Small businesses usually faced the claims from their customers, clients, defect in products etc hence required to purchase the insurance so as to survive and prosper the business. Liability insurance comes in two forms that is :

General Liability insurance where the claims for the bodily injury, property damages are covered. Like for example if the customer is insured at the property of business like store etc, and claim for medical cost this liability insurance can cover the damages. Likewise, claims made for other's property damage by your business are covered.

Professional Liability insurance are purchased to protect business against the mistakes, errors or omissions of the products that happened while conducting the business. Like for example, when the employee makes the clerical mistake which caused either the monetary damage for business or customer that can be covered. Like for example, if the stylist at salon used the other color for hair coloring instead of chosen by client which caused damage to the client hair, such claims can be settled by this insurance.

For the small business, owners prefer comprehensive plan which will include the benefit of both the insurances so as to protect them against claims either made knowingly or unknowingly without making business to suffer financially. Such insurance also provides the greater convenience, protects from property damage, liability claims etc.