Accidents happen. So often, in fact, that we have a phrase that basically allows us to try and convince ourselves that it’s okay. We try and rationalize it to ourselves: “Hey, this accident just happened, and it was totally not my fault, so I’m going to say this in order to try and make this other person not feel.” Or you perhaps even, “That accident was totally my fault… I didn’t mean to hit that support on the deck with a sledgehammer… but accidents happen!” Either way, accidents do happen, and when they come up it pays to have them covered, which is where general liability coverage and errors and omissions coverage can help.
General liability is there for those unexpected accidents that occur on your business premises. Whether someone falls down the stairs, a customer damages his car in your parking lot, or even if someone believes you have slandered or defamed their character; general liability has got you covered.
If you are a contractor working on a job, and one of your employees falls from a ladder and lands on top of a third party (a neighbor walking his dog, for example), and the third party is hurt in the collision, general liability will cover the injured person’s medical care. It also covers you if one of your employees accidentally smashes a sledgehammer through a wall that was not supposed to be a part of the kitchen re-model.
Errors and Omissions insurance covers those professionals that act as consultants or give specialized advice or care. When they give bad advice, a customer could come back and sue them for damages. However, errors and omissions insurance protects them from having to take care of the litigation and settlements out of pocket.
Contractors who are consulting on a project (accountants, financial planners, interior designers and landscape architects) should more than likely have errors and omissions insurance. Suppose that you are a landscape architect doing a job, and you decide not to get rid of a gigantic willow tree on the property that’s leaning a little bit too close to the house. Next week, when it winds up crashing through your client’s living room, they’ll be looking for someone to blame. Errors and omissions insurance will lower your liability risks and protect you from unnecessary litigation.
A lot can go wrong on a construction site, and the better coverage you have the less you will have to worry about accidents when you are on the job. General liability insurance and errors and omissions insurance can help limit your losses and the risk of serious lawsuits that could damage the future of your company.