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What are the three main liability policies you should know about for your commercial business?
They are Commercial General Liability, Errors and Omissions and Directors and Officers policies.
Why should I be looking at these three policies?
They are the main policies that will help to protect you for most insurable claims of negligence against you. There are other liability products that may need to be looked at in specific cases, however most of the coverage available is contained in or can be added to these three main types of policies. These three coverage’s have one thing in common, they all aim to protect you, your employees and other named insured’s against negligent claims made against you. They often work in conjunction to provide thorough coverage against a spread of risks, but they each cover a unique area separate from each other.
What they are:
A CGL protects you against an occurrence where it is alleged that you have done real damage to another person or property that you typically do not own or control, through your negligence. Errors and omissions (E&O) is the insurance that covers your company, or you individually, in the event that a client holds you responsible for a service you provided, or failed to provide, that did not have the expected or promised results D&O Policies will pay the costs a director or officer incurs due to an action or allegation, made by a third party. Similarly, most policies will reimburse your Organization when you have indemnified the director or officer for the costs, which have been incurred To put these into easy to understand language, a CGL covers you for damage to other things or people and is usually physical in nature. E&O covers you for your advice and the damage it can cause. D&O covers you for your actions while running your company.