General Liability Insurance vs. Professional Liability Insurance: Do You Need Both?

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As a business owner, you understand the importance of protecting your company from unexpected events. One of the ways to do this is by purchasing insurance. However, with so many types of coverage available, it can be challenging to determine which policies are necessary for your business. In particular, you may be wondering whether you need commercial general liability insurance, professional liability insurance, or both. In this blog post, we will explore the differences between these two types of coverage and help you determine whether you need both.

What is Commercial General Liability Insurance?

Commercial general liability insurance, also known as CGL insurance, is a policy that protects your business against claims of bodily injury or property damage caused by your products or services. This policy can cover expenses related to legal fees, settlements, and judgments if a third party sues your business for damages.

For example, if a customer slips and falls in your store and they sue your business for medical expenses, commercial general liability insurance can cover those costs.

What is Professional Liability Insurance?

Professional liability insurance, also known as errors and omissions insurance (E&O insurance), is a policy that protects your business against claims of negligence or errors related to the professional services or advice you provide. This type of coverage is essential for businesses that provide services such as consulting, construction, accounting, or legal services. Any business that provides advice to clients needs professional liability insurance.

For example, if a client sues your business for financial damages resulting from your professional advice, professional liability insurance can cover the costs of the lawsuit.

Do You Need Both?

Whether you need both commercial general liability insurance and professional liability insurance depends on the nature of your business. If you provide professional services to clients, you should consider purchasing professional liability insurance. This policy can protect your business against claims of negligence or errors related to your professional services, which are not covered by commercial general liability insurance.

However, even if you don’t provide professional services, you may still benefit from having both types of insurance. Commercial general liability insurance can protect your business against claims of bodily injury or property damage caused by your products or services. This type of coverage is essential for businesses that sell products or operate in a physical location, such as a retail store or restaurant.

In some cases, you may be required to purchase both types of insurance by law or contract. For example, if you rent commercial property, your landlord may require you to carry both commercial general liability insurance and professional liability insurance.

Commercial general liability insurance and professional liability insurance are two essential types of coverage that can protect your business against unexpected events. While professional liability insurance is essential for businesses that provide professional services, commercial general liability insurance is necessary for all businesses that sell products or operate in a physical location. Ultimately, the decision of whether you need both types of insurance depends on the nature of your business and your specific risks. Speak with an insurance agent or broker to determine the best coverage for your business.

Personal service combined with depth of knowledge in the insurance marketplace, and access to a wide range of carriers is the combination of factors that sets Oakwood Insurance apart from its competitors. We not only work in the north metro, but it’s also our home. We strive to support the vibrancy and growth of this community. We want it to thrive, and we want you to thrive. We will review your insurance coverage and help you understand what you have and ensure that it’s the best fit for your goals.

Product Liability Insurance

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If you are in the business of designing, manufacturing, selling, and distributing a product, you understand that it can be exciting, involve hard work, and can even be a bit risky. When the product you represent causes injury or damage to a third party, you need and deserve protection. Depending on the coverage you have, you may not be adequately protected from a product liability claim. Many “standard” insurance policies have limitations for product liability claims. For example, a contractor installed windows in a custom home and 9 months later the windows leaked, causing thousands of dollars of damage. The window manufacturer said their windows are fine; it was the installation that was done incorrectly. The contractor may be held responsible for the damage. Product liability insurance would provide protection in this case.

Our experienced staff will work with you to help find the right insurance and risk solutions for your business. Our knowledgeable team can work with any business; we know and understand your industry.

What is product liability insurance?

Product liability insurance can provide protection from damages, claims, and other liability arising out of the selling, distributing, manufacturing, and design of products. Damages can include bodily injury, property damage, and even death.

An important feature of product liability insurance is legal defense coverage. The cost to defend an allegation can create a strain on your firm’s resources.

Claims can come from any of the following:

  • Poor workmanship
  • Breach of warranty
  • Failure to warn
  • Defect in design or manufacturing
  • Material defect
  • Failure to provide adequate instructions

Classes of businesses we work with:

  • Contractors
  • Artisan Contractors
  • Manufacturing
  • Restaurants
  • Distributors
  • Food Processors
  • Wood Products
  • Automotive
  • Sporting Goods
  • And More

We have a number of highly-rated insurance companies to select from. Call us today for more information.Personal service combined with depth of knowledge in the insurance marketplace, and access to a wide range of carriers is the combination of factors that sets Oakwood Insurance apart from its competitors. We not only work in the north metro, but it’s also our home. We strive to support the vibrancy and growth of this community. We want it to thrive, and we want you to thrive. We will review your insurance coverage and help you understand what you have and ensure that it’s the best fit for your goals.

Low Cost Insurance Is Not Better Insurance

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Insurance is a necessary expense for many people. Whether it’s health insurance, car insurance, or home insurance, having coverage can give you peace of mind and protect you from financial ruin in the event of an accident or unexpected event. However, not all insurance policies are created equal, and opting for the cheapest option may not always be the best choice. In fact, cheaper insurance is often not better insurance. Here are some reasons why.

Lower Coverage Limits

One of the main ways insurance companies can offer cheaper rates is by offering lower coverage limits. Coverage limits are the maximum amount of money an insurance company will pay out for a claim. If you opt for cheaper insurance, you may be getting lower coverage limits, which means you may not be fully covered in the event of a major accident or unexpected event. This can leave you with significant out-of-pocket expenses that you may not be able to afford.

Higher Deductibles

Another way insurance companies can offer cheaper rates is by increasing the deductible – the amount of money you must pay out of pocket before your insurance coverage kicks in. While a higher deductible can lower your monthly premium, it also means you’ll have to pay more out of pocket before your insurance company starts covering the cost of damages. This can be a burden, especially if you’re already struggling to make ends meet.

Exclusions and Limitations

Cheaper insurance policies may also come with exclusions and limitations that can limit your coverage. For example, some health insurance policies may exclude coverage for pre-existing conditions or limit coverage for certain medical treatments. Car insurance policies may exclude coverage for certain types of accidents or limit coverage for damages to your vehicle. These exclusions and limitations can leave you with significant gaps in coverage that can leave you vulnerable to financial loss.

Poor Customer Service

Cheaper insurance policies may also come with poor customer service. Insurance companies that offer cheap rates often need more resources to invest in customer service, which can lead to long wait times, unhelpful representatives, and delayed claims processing. This can be frustrating and stressful, especially if you need to file a claim in a hurry.

In conclusion, while it may be tempting to opt for the cheapest insurance policy available, it’s important to consider the potential drawbacks of doing so. Cheaper insurance policies may offer lower coverage limits, higher deductibles, exclusions and limitations, poor customer service, and less comprehensive coverage. Instead, it’s important to shop around for insurance policies that offer the right balance of coverage and affordability. By doing so, you can ensure that you’re fully protected in the event of an accident or unexpected event without breaking the bank.

Personal service combined with depth of knowledge in the insurance marketplace, and access to a wide range of carriers is the combination of factors that sets Oakwood Insurance apart from its competitors. We not only work in the north metro, but it’s also our home. We strive to support the vibrancy and growth of this community. We want it to thrive, and we want you to thrive. We will review your insurance coverage and help you understand what you have and ensure that it’s the best fit for your goals.

 

 

What Kind Of Vehicles Are Covered under A Commercial Auto Policy?

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Commercial Auto Insurance

If you own a business that uses vehicles, it’s essential to have a commercial auto policy to protect your company and your employees. Commercial auto policies cover a variety of vehicles used for business purposes, ranging from company cars to heavy-duty trucks. Here are the types of vehicles typically covered under a commercial auto policy:

Cars and vans: Commercial auto policies cover standard cars and vans that your business owns, leases, or rents. These vehicles are typically used for transporting employees, making deliveries, and running errands for the business.

Trucks: Commercial auto policies also cover a variety of trucks, including pickup trucks, box trucks, and tow trucks. These vehicles are commonly used for hauling equipment, transporting goods, and towing other vehicles.

Trailers: If your business uses trailers to transport goods or equipment, they can also be covered under your commercial auto policy. This includes both enclosed and open trailers, as well as flatbeds and other specialized trailers.

Buses: Businesses that transport people, such as shuttle services or tour companies, often use buses. These vehicles can also be covered under a commercial auto policy.

Heavy-duty vehicles: Construction companies, landscapers, and other businesses that use heavy-duty vehicles such as bulldozers, cranes, and excavators can also have them covered under a commercial auto policy.

It’s essential to note that commercial auto policies often have different coverage levels than personal auto policies. For example, a commercial auto policy may have higher liability limits, as businesses typically have more assets to protect. It’s also essential to ensure that all drivers who operate covered vehicles are listed on the policy.

In conclusion, a commercial auto policy covers a wide range of vehicles used for business purposes. It’s crucial to work with an experienced insurance agent to determine the appropriate coverage levels for your business’s needs and ensure that all vehicles and drivers are appropriately covered.

Commercial business insurance provides wide-ranging protection for businesses and their subsidiaries under a single policy. There are various types of commercial business insurance that takes care of property, liability and workers’ compensation, to name a few. While property insurance covers damages to business property and products stored within the premises; liability insurance provides coverage for damages to third parties; and commercial auto insurance covers your vehicles.

We know how to develop and maintain insurance and risk management programs that are comprehensive and cost-effective.

Dedicated service and knowledge have kept our clients feeling secure about who is handling their insurance needs. We know that different businesses have different commercial vehicle insurance needs. By offering flexible policies from various insurance carriers, we provide you with the assurance that your policies are the best available in today’s market.

As a business owner, you have enough on your mind without having to worry about your insurance needs. You want to have the confidence that the business you’ve built is covered by a company that understands your business insurance needs.

Commercial business insurance is an important aspect of any business that cannot be ignored especially if the business premises are leased or rented and even otherwise. Whatever your commercial insurance needs, we can design a protection program that’s right for you.

Low-Cost Insurance Is Not Better Insurance

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Insurance is a necessary expense for many people. Whether it’s health insurance, car insurance, or home insurance, having coverage can give you peace of mind and protect you from financial ruin in the event of an accident or unexpected event. However, not all insurance policies are created equal, and opting for the cheapest option may not always be the best choice. In fact, cheaper insurance is often not better insurance. Here are some reasons why.

Lower Coverage Limits

One of the main ways insurance companies can offer cheaper rates is by offering lower coverage limits. Coverage limits are the maximum amount of money an insurance company will pay out for a claim. If you opt for cheaper insurance, you may be getting lower coverage limits, which means you may not be fully covered in the event of a major accident or unexpected event. This can leave you with significant out-of-pocket expenses that you may not be able to afford.

Higher Deductibles

Another way insurance companies can offer cheaper rates is by increasing the deductible – the amount of money you must pay out of pocket before your insurance coverage kicks in. While a higher deductible can lower your monthly premium, it also means you’ll have to pay more out of pocket before your insurance company starts covering the cost of damages. This can be a burden, especially if you’re already struggling to make ends meet.

Exclusions and Limitations

Cheaper insurance policies may also come with exclusions and limitations that can limit your coverage. For example, some health insurance policies may exclude coverage for pre-existing conditions or limit coverage for certain medical treatments. Car insurance policies may exclude coverage for certain types of accidents or limit coverage for damages to your vehicle. These exclusions and limitations can leave you with significant gaps in coverage that can leave you vulnerable to financial loss.

Poor Customer Service

Cheaper insurance policies may also come with poor customer service. Insurance companies that offer cheap rates often need more resources to invest in customer service, which can lead to long wait times, unhelpful representatives, and delayed claims processing. This can be frustrating and stressful, especially if you need to file a claim in a hurry.

In conclusion, while it may be tempting to opt for the cheapest insurance policy available, it’s important to consider the potential drawbacks of doing so. Cheaper insurance policies may offer lower coverage limits, higher deductibles, exclusions and limitations, poor customer service, and less comprehensive coverage. Instead, it’s important to shop around for insurance policies that offer the right balance of coverage and affordability. By doing so, you can ensure that you’re fully protected in the event of an accident or unexpected event without breaking the bank.

How Agents Should Serve Their Customers

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In today’s fast-paced business world, providing excellent customer service is more important than ever. With so many options available to consumers, businesses must strive to provide exceptional service to keep their customers happy and loyal. Here are four keys to customer service that can help businesses stand out in a competitive marketplace:

Listen to your customers:

The first key to great customer service is listening to your customers. When customers feel like they are being heard and understood, they are more likely to become loyal customers. Make sure you are actively listening to your customers, whether they are complaining or praising your business. Respond to their concerns and provide solutions to their problems. This will show your customers that you value their feedback and are committed to providing excellent service.

Be responsive:

Customers expect businesses to be responsive to their needs. When customers reach out to your business, whether it’s through email, social media, or phone, respond as quickly as possible. Even if you don’t have an immediate solution to their problem, let them know that you are working on it and will get back to them as soon as possible. Being responsive shows that you care about your customers and are committed to providing excellent service.

Personalize your interactions:

Customers appreciate personalized interactions with businesses. When you personalize your interactions, you show your customers that you care about them as individuals, not just as customers. Use your customers’ names when you communicate with them, and remember their preferences and past interactions with your business. This will help you provide a more personalized experience that will make your customers feel valued and appreciated.

Go above and beyond:

To truly stand out in the marketplace, businesses must go above and beyond to provide excellent customer service. This means anticipating your customers’ needs and providing solutions before they even ask. It also means providing unexpected perks and rewards to show your customers that you value their business. Going above and beyond can help you build strong relationships with your customers and turn them into loyal advocates for your business.

In conclusion, providing excellent customer service is essential for businesses that want to stand out in a competitive marketplace. By listening to your customers, being responsive, personalizing your interactions, and going above and beyond, you can create a customer service experience that will make your customers feel valued and appreciated.

Why Your Business Needs Cyber Liability Insurance

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Cyber Liability Insurance: Protecting Your Business from Digital Threats

In today’s digital age, businesses of all sizes are increasingly vulnerable to cyber-attacks and data breaches. These incidents can result in significant financial losses, damage to a company’s reputation, and even legal action. That’s why it’s important for businesses to consider cyber liability insurance as part of their overall risk management strategy.

What is Cyber Liability Insurance?

Cyber liability insurance is a type of insurance policy that provides coverage for a range of expenses related to a cyber-attack or data breach. This can include the costs associated with notifying customers of a breach, legal fees, credit monitoring services, public relations expenses, and other related costs. Cyber liability insurance can also cover damages resulting from the loss or theft of sensitive information, such as credit card numbers, social security numbers, and other personally identifiable information.

Why is Cyber Liability Insurance Important?

As cyber threats continue to grow in complexity and frequency, businesses face increasing risks of cyber-attacks and data breaches. These incidents can have significant financial and reputational consequences, particularly for small and medium-sized businesses that may lack the resources to recover from a cyber attack on their own.

Cyber liability insurance can help mitigate these risks by providing coverage for a variety of expenses associated with a cyber incident. This can help businesses recover more quickly from a breach and minimize the potential financial impact of the incident.

What Does Cyber Liability Insurance Cover?

The coverage provided by a cyber liability insurance policy can vary depending on the specific policy and the needs of the business. However, most policies will typically cover the following:

  • Data Breach Notification: Cyber liability insurance can cover the costs associated with notifying customers or clients of a data breach. This can include the cost of printing and mailing letters, setting up call centers, and providing credit monitoring services.
  • Legal Fees: Cyber liability insurance can cover the legal fees associated with defending against claims related to a data breach or cyber attack. This can include lawsuits brought by customers, clients, or regulatory agencies.
  • Public Relations Expenses: Cyber liability insurance can cover the costs associated with managing the public relations fallout from a data breach or cyber attack. This can include hiring a public relations firm to manage media inquiries and create a crisis communications plan.
  • Cyber Extortion: Cyber liability insurance can cover the costs associated with responding to a cyber extortion attempt. This can include payments made to extortionists to prevent the release of sensitive information.
  • Business Interruption: Cyber liability insurance can cover the costs associated with a loss of income due to a cyber incident. This can include lost profits and expenses related to restoring computer systems.
  • Cyber Liability: Cyber liability insurance can cover damages resulting from the loss or theft of sensitive information, such as credit card numbers, social security numbers, and other personally identifiable information. This can include costs associated with identity theft, fraudulent credit card charges, and other related expenses.

How to Choose a Cyber Liability Insurance Policy

When choosing a cyber liability insurance policy, it’s important to consider the specific needs of your business and the potential risks it faces. Some key factors to consider when choosing a policy include:

  • Coverage Limits: Make sure the policy provides sufficient coverage for your business’s needs, including potential costs associated with a cyber incident.
  • Exclusions: Review the policy’s exclusions to ensure that it covers the types of incidents that are most relevant to your business.
  • Deductibles: Consider the deductible amount and how it will affect your ability to recover from a cyber incident.
  • Policy Terms: Review the policy terms and conditions to ensure that they meet your business’s needs and that you understand the coverage provided.

Conclusion

Cyber liability insurance is an important tool for businesses of all sizes in today.

 

2023 Commercial Insurance Outlook

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Many businesses have experienced profit reductions due to economic pressures over the past few years. The pandemic and the supply chain problem have exacerbated this unpredictability. Having the right kind of commercial insurance is one method to keep financial losses and risks under control. Business owners and risk managers must thoroughly evaluate their insurance and risk management program in 2023.

Forecast for Commercial Lines in 2023

The market for property and casualty insurance and risk management is expanding as company risks rise. The huge vaccine rollout helped to contain the pandemic after its peak in 2022, but there is still a chance of new outbreaks. There are many excellent insurers ready to help you manage your risk in 2023.

Companies that provide insurance for business risks make up the commercial lines industry. The two primary categories of commercial lines are general liability and commercial property insurance. But others can include cyber, employment, earthquake, directors and officers liability, and more. AM Best, a rating organization, reported that the pandemic’s influence on commercial lines had decreased in late 2022. Even in 2023, the government issued a warning about potential obstacles that could fuel more litigation and inflation. The rating agency described the commercial lines market outlook as “stable” on average.

Since the fourth quarter of 2020, in 2023, it is less expected that interest rates will rise at the same rate they did a few years ago. However, insurance businesses will probably continue to expand their needs due to rising business risks even as rates flatten as a result of more market competition. Due to rising cyber threats, the market for cyber liability insurance is anticipated to expand. The supply chain issues will continue well into 2023.

Consumers of commercial insurance can obtain affordable rates by engaging with brokers who have developed connections with reliable insurance underwriters. Giving customers advice on lowering their risks promotes trust, renewals, and fewer claims. Using an agent that understands your risk is the best way to obtain the best possible combination of coverage and price.

2023 Casualty Renewal Strategy

The US commercial insurance market has seen an increase in underwriting capital of over $150 million since 2020. Get to the market early and have a well-established risk management program. Be able to show underwriters how your risk is the one they should select out of the hundreds they will review over the year.

Insurance For My Small Business

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Introduction

Your small business is important to you, and it should be protected. That’s where insurance comes in. If you’re like most small-business owners, you probably already have some insurance. But maybe your current policy doesn’t cover everything your business needs—or maybe it does but at a price that’s simply too high for your budget right now. You may not even realize how much insurance could help protect your business when disaster strikes, or a major event occurs that threatens its well-being or financial stability.

Commercial property insurance

Commercial property insurance covers the cost of replacing your building and its contents in the event of damage or loss, as well as protecting against theft. This type of cover is particularly important if you are renting or leasing space for your business.

Commercial liability insurance

Liability insurance protects your business from claims arising out of your premises and operations. Coverage can include:

  • Bodily injury
  • Property damage
  • Personal injury
  • Professional liability
  • Employment liability
  • Cyber breach

Business interruption insurance

Business interruption insurance provides compensation for lost profits and other costs associated with the temporary closure of a company due to a covered event such as a fire or flood. The coverage can also include additional expenses like relocation costs and legal fees if someone files suit against you for damages caused by the event that led to your business being shut down temporarily.

Commercial auto insurance

Commercial auto insurance is a type of business insurance that covers your fleet. If you own a business, chances are you have employees who drive company cars to and from work. Commercial auto insurance is designed for these vehicles, so if one gets damaged or stolen, there will be no out-of-pocket costs for the owner. The coverage includes:

  • Bodily injury liability coverage
  • Property damage liability coverage (PDL)
  • Comprehensive and collision coverage

Make sure to check with your agent about deductibles, limits, and other details before signing up for commercial car insurance in order to get the best rates possible!

Workers’ compensation insurance

Workers’ compensation insurance is a state-mandated insurance policy that protects you from injuries and illnesses sustained by your employees on the job. This coverage pays for medical bills, lost wages, and other costs associated with these injuries and illnesses. It also applies to death benefits for dependents of deceased workers who have been covered under workers’ comp.

In conclusion, it’s important to remember that your business needs to be properly insured. Make sure you have the right coverage for your company, and don’t forget about things like workers’ compensation or employment practices liability insurance!

 

What Kind of Businesses Need Professional Liability Insurance?

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If you’re a business owner, you spend most of your time thinking about how to grow your business. But it’s easy to remember one of the fundamental building blocks: professional liability insurance. What is it? Why do you need it? And what does it cover?

Why Does Your Business Professional Liability Insurance?

  • You may be sued.
  • You may be held responsible for your actions or the actions of someone who works for you.
  • If you give advice to customers, you might be sued.
  • You may be held responsible for the actions of other people on your property or in your building/office space. 

What Does Professional Liability Insurance Cover?

Professional Liability Insurance can help protect you against claims of negligence. It covers legal costs in the event that a lawsuit is brought against you and can even cover damages or injury to third parties. It also helps pay for legal fees, and it will pay for your defense if you are found not guilty of any charges. Professional liability insurance can cover the costs of lawsuits over:

  • Work errors or oversights
  • Undelivered services
  • Missed deadlines
  • Budget overruns
  • Incomplete work
  • Breach of contract
  • Accusations of negligence 

Who Needs Professional Liability Insurance?

Professional Liability Insurance protects professionals from claims and lawsuits. If your advice or work injures someone, or if they believe their property has been damaged by something you did, a claim can be made against you. Professional liability insurance helps protect you from these claims and ensures that your business stays protected. Firms like these should have professional liability insurance.

  • Accountants
  • Lawyers
  • Contractors
  • Consulting agencies
  • Real estate firms
  • Architects, designers, and engineers
  • Real estate brokers
  • Financial consultants
  • Accountants and bookkeepers
  • IT professionals and programmers
  • Marketing and advertising professionals

 Conclusion

When you’re starting a business or running a current business, it can be tempting to focus on marketing and sales. However, there are many other aspects of the business that you should be equally concerned about. Professional liability insurance is one of those aspects that need careful consideration because it will protect your business against lawsuits and claims of negligence.