When it comes to insurance, there are two main types of liability coverage: personal and business. Understanding the difference between the two is essential for any business owner or homeowner. Personal liability insurance provides coverage for bodily injury or property damage claims for which a homeowner is legally responsible. On the other hand, commercial auto insurance is necessary when a business owns a vehicle.
General liability covers physical damage, while professional liability covers financial damage. Sometimes, a general liability policy includes product liability insurance for defective products for construction professionals, manufacturers, retailers, and other business owners. This coverage protects the insured from lawsuits for a finished job that physically harms someone. Professional liability insurance deals with claims for financial losses that result from a person's products or services.
It safeguards policyholders from financial losses caused by medical expenses resulting from the treatment of injuries and from legal costs resulting from litigation, settlement and the payment of damages. Most policies also cover family members and residents of a household for their actions on and off the premises. Excessive liability coverage and supplemental coverage help provide small businesses with greater security of protection if they are sued on multiple fronts or if they need to pay damages that exceed the limits of a standard CGL insurance policy. While this policy is especially important for service providers, most small business owners can benefit from its coverage.
Insurance Business America has conducted extensive research to determine the best personal liability coverage for homeowners. Knowing the difference between personal and business liability insurance is essential to ensure you have the right coverage for your needs.
