Whether it’s the numerous coverage options or the unfamiliar terminology, you may become tempted to simply sign up for the cheapest business insurance option. To assist in your decision-making, here is a simple breakdown of two key liability coverages you should inquire about when reviewing potential insurance companies in Sherman Oaks.
General Liability Insurance
According to Arroyo Insurance, General liability is there to cover you against the risks associated with everyday business activities. If a third party sustains an injury or property damage because of your business, your policy will be there to cover any legal fees and payments for which you’re found liable.
Professional Liability Insurance
Professional liability is more specific than a general liability in that it covers you in case a third party claims to have incurred a loss because of an error or omission on your part. An example of this is a client claiming to have received advice from a financial consultant which led to them experiencing financial losses. Like general liability, your policy would cover your legal fees and other expenses for which you’re liable.
There are several other forms of liability coverage that may be relevant to you depending on your industry. If you’re just starting out, it’s best to work with an agent who can provide guidance on which coverages are best and craft a policy that’s right for you.