Property And Casualty Liability
Property And Casualty Liability
Professional Liability Insurance Vs. General Liability Insurance
Intrinsically, insurance is based on the principles of protecting a person or business from particular risks. This can include anything from natural disasters to theft to property damage.
Yet, when it comes to business, the kinds of risk can be far more significant, as well as far more costly. Not only are you responsible for what happens to your own property and employees, but you’re also responsible to the people with whom your business comes in contact. General liability insurance covers these risks and protects your company from possible adverse financial situations. Professional liability insurance also covers those same risks, but is more specific to certain professional fields. (http://techinsurance.com/coverage/general_liability.aspx)
The Concern of Liability
Liability is a concern for businesses because a business is responsible not only for harm and damages done as a direct consequence of doing business, but also as an indirect consequence of doing business.
This, unfortunately, entails a wide selection of possibilities. A mistake made months or years ago by you or your employees could have caused harm to someone by a third party using your product or service. Regrettably, it’s nearly impossible to predict everything that may happen as a result of your business services or products. Professional liability insurance and general liability insurance are thus critical in protecting your interests and the interests of your company. Otherwise, the risks of putting yourself and your business in serious financial jeopardy are limitless. (http://techinsurance.com/coverage/professional_liability.aspx)
The Differences
General liability insurance and professional liability insurance are like two sides of a coin. Whether it’s personal, business, or corporate insurance, insurance packages and providers envelop a range of different facets for individuals and groups of individuals. Though the boundary is sometimes blurred between the diverse insurance coverage provided by either general liability or professional liability insurance, there are surely differences between the two. (http://techinsurance.com/coverage/general_liability.aspx)
Ultimately, the differences between general liability insurance and professional liability insurance put them in different categories, which include business insurance, and general insurance. Knowing the disparities and acquiring the most suitable insurance is a critical move for your company. Insurance should always be an integral part of your business.
Policies considered general liability insurance typically address claims of bodily injury or property damage liability. Most companies are already familiar with general liability coverage including: injury, environmental impact, casualty, and more of the like.
Professional liability insurance differs in that it pertains to negligence associated with your professional services. The damage is typically financial, rather than physical. Accordingly, a professional such as an accountant would be expected to perform in a certain manner and abide by a set code of conduct. Violating those principles could hold the accountant responsible for harm or damages done to others. A management consultant may have a different set of professional expectations to abide by. Both professionals must stand by their particular professional standards, or could be subject to liability suits and resulting damages. (http://techinsurance.com/coverage/professional_liability.aspx)
As with general liability insurance, professional liability insurance is crucial because it covers the indirect consequences of your conduct. Even a phone conversation with a third party advising them on how to deal with one of their own clients can leave you liable for your conduct. Consequently, professionals always need to practice the utmost care when carrying out their duties. In order to be vigilantly careful, it’s important to have the appropriate general liability insurance, and the proper professional liability insurance that may save you from financial harm.
How does a recession effect the insurance industry?
Specifically Commercial Property and Casualty- General Liability, Workers’ Comp, D&O/E&O. Will business be forced to cut back or eliminate coverage all together?
Probably will not impact the P&C business much. The business cycle typically has very little correlation to the insurance cycle. The fortunes of insurance companies tend to be influenced by how much capacity (capital) is in the insurance business. When there’s too much (like right now) competition gets intense, prices get driven down and results begin to falter. When enough insurance compamies get in enough trouble, some cut back, some go out of business and the insurance climate (at least from the insurance company point of view) improves. That happened on the property side in 2006. The year after all the 2005 hurricanes which cost the industry billions. 2006 was a great year as prices increased significanty but there were no big hurricanes. It was so good prices came down in 2007 and again no big hurricanes. If there are no big hurricanes in 2008, expect the industry to get real competitive.
Innovation Group Hertz congratulated for their VIP Standards and Technology Innovation Award for Best Practice Group, a global provider of enterprise software and Business Process Outsourcing solutions to the Property And Casualty Insurance industry, is pleased to congratulate, Hertz Europe and its claims management division, HCM, for their recognition by Insurance Networking News (INN) and Celent as the third place winners of the 2010 VIP Standards and Technology Best Practice Award for …
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