When it comes to small business insurance, one type is professional liability insurance. But is that type of insurance only for “professionals”? What about your business? Is it considered a professional business? Who makes that decision, anyway? How do you know, when it all comes down to it, whether or not you need professional liability insurance?
Professional liability insurance is a liability insurance coverage that has been designed to accommodate businesses that engage in financial exchange primarily. In this way, the insurance is more tailored to liability of a “purely economic nature”. If no one turns an ankle, no problems. If your company accidentally shorts an exchange and this causes further loss without any physical injuries happening, no problems. This is exactly why professional liability insurance was conceived, and it functions very well.
However, if your business is of a more robust variety, and has within it elements of movement, whether that be of man, machine or both, then you need to consider general liability insurance, because that is what it was designed for. General liability insurance is for almost any kind of liability your business could be exposed to, and it covers that very well.
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