The Differences Between Business Liability and Errors and Omissions Coverage

Many business owners are confused about the differences between General Liability (GL) and Errors and Omissions (E&O) insurance. If you don’t know what each type of coverage does to protect your business, you could incur more than you may expect. There are obvious differences between the two, and if you want to get the most out of a claim, it’s important to understand them.

What’s Covered Under General Business Liability

A general liability policy will cover both bodily injury and property damage that may be caused by your business’s operation, but it won’t cover any intangible property (like computer data). It also won’t cover any claims that involve the economic harm to a third party that resulted from what your business has to offer. A business liability policy won’t cover any losses that resulted from a property that has been rendered useless because of your product or service, and it won’t cover any losses that resulted from a recall.

If you need a liability policy for your business in Urbandale, IA, then you need to get in touch with BLC Insurance. We have agents with a great deal of experience in commercial insurance, and they can help you get the coverage you need.

What’s Provided by Errors and Omissions Coverage

Errors and Omissions policies are meant to cover any liabilities that are associated with an economic hardship that resulted from a third party. This means the policy can cover any damages to a third party if it has been caused by your product or service. Errors and Omissions insurance can also cover any damage to intangible property, which can include any computer data that has been lost. It can also cover any damages to a piece of property that resulted from your product or service if it has been deemed defective. However, Errors and Omissions won’t cover the following:

•    Bodily injury
•    Property damage
•    Personal and advertising injury

These are often covered by the General Liability portion of a commercial insurance policy.

If you need a solid commercial policy that can suit your business’s needs, then you need to contact the office of BLC Insurance. We happily serve the people of Urbandale, IA and we understand the needs of our community. If you want a commercial insurance policy that your company can rely on, be sure to contact our office today!