General liability insurance provides coverage for businesses regarding accidents and non-professional negligence. The line between normal negligence and professional negligence is thin and often misunderstood. Keep reading to understand the difference between these two terms and how they apply to general liability insurance.
The Difference Between Normal Negligence and Professional Negligence
Typical negligence, also known as non-professional negligence, refers to any accident that results in a third party’s bodily injury or property damage. These accidents generally arise out of normal, everyday business activities rather than specialized services. Such accidents are typically covered by general liability insurance.
On the other hand, professional negligence is tied directly to specialized and professional services. Professional negligence refers to accidents where a professional makes a mistake and causes a client to lose money or suffer other damages. For instance, say a financial advisor gives a client advice. The client takes that advice, and days later loses thousands of dollars as a direct result. This is an incident of professional negligence and would not be covered under general liability insurance.
Accidents Covered Under General Liability Insurance
Examples of accidents that would be covered by general liability insurance include:
There are many, many more examples these accidents, thus emphasizing why businesses need general liability insurance to safeguard against them. Liability lawsuits can be thousands or even millions of dollars—especially lawsuits that are stretched out over a long period of time.
When to File a General Liability Claim
It’s always crucial to file a claim when another person, especially a client or a member of the public, is involved. Even if a customer promises not to sue after an injury or property damage, their medical condition could unexpectedly grow worse or they could simply change their mind, leading them to later seek compensation.
When an accident occurs, first be sure the victim (if the incident involved bodily injury) receives medical attention immediately. Afterward, document every important aspect of the situation, including (if possible) pictures and witness testimonies. Once the claim is approved, compensation for the victim will be provided, as well as possible legal compensation. Contact us today to learn more about general liability insurance.