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When it comes to protecting your business, liability insurance is a must. But which is right for your needs? The two common types of liability insurance are general and professional liability insurance. While both types of insurance offer protection, they differ in the types of risks they cover. Let’s take a closer look between the two and discuss how they can protect you.

What Is General Liability Insurance?

General liability insurance is the most basic kind of business insurance that every business owner should have to protect themselves. It provides coverage for accidents or injuries on your business property and damages caused by your products or services. It also covers legal fees, medical expenses, and settlements awarded to the injured party. Here are a few scenarios general liability insurance would typically cover:

• A customer slips and falls on your store’s wet floor and breaks their arm. A general liability policy could cover the customer’s medical expenses.
• A contractor remodels a bathroom when a worker accidentally breaks a large window. The contractor’s general liability policy could cover replacing the customer’s window.
• A competing business accuses you of copyrighting its product design and takes you to court. A general liability policy could cover legal fees and judgments against you.

What Is Professional Liability Insurance?

Professional liability insurance, also called errors and omissions (E&O), helps protects business owners from negligence or error claims related to their professional service or advice. Its coverage focuses specifically on lawsuits that stem from your professional duties. These third-party lawsuits are among the most expensive lawsuits business owners can face. Professional liability insurance helps cover legal fees, settlements, and compensatory damages. Here are some scenarios professional liability insurance would typically cover:

• As a bookkeeper, you made a clerical mistake that costs your client thousands of dollars, penalties, and late fees.
• A patient sues you for malpractice after a surgical procedure goes wrong due to an error on your part.
• An architectural firm you own completes a project 8 months behind schedule. Your client accuses you of breaching your contract resulting in expensive project delays.

Who Needs Professional Liability Insurance?

If your business offers professional services or advice to customers, you’ll need professional liability insurance to protect yourself. Some of the specialists who should consider getting this insurance are:

• Architects, designers, and engineers
• Financial consultants
• Accountants and bookkeepers
• Marketing and advertising professionals
• Beauty consultants
• Doctors, nurses, and physicians

Do You Need Both Types of Coverage?

General liability insurance is not required by law. However, most states require you to have general liability insurance when applying for specific licensing types. In addition, if your business has a physical location, many commercial landlords require their tenants to carry general liability insurance. It’s important to understand that general liability insurance does not provide coverage for claims of professional mistakes or erroneous advice. That is why having a professional liability policy helps fill in those gaps. Depending on your business and the types of risks you face, both of these insurance policies may be necessary to protect you and your business.

How To Shop For General and Professional Liability Insurance

General liability and professional liability insurance usually aren’t offered as a package. General liability insurance is often sold on its own or as part of a business owner’s policy, which also includes commercial property insurance and business interruption insurance. Professional liability insurance is not included in a business owner’s policy and must be purchased as a separate policy. At AIS Insurance, we can help you find the lowest rates and best coverage for your needs. Speak with one of our Commercial Insurance Specialists today at (855) 919-4247 for a quick and easy free quote.

The information in this article is obtained from various sources and offered for educational purposes only. Furthermore, it should not replace the advice of a qualified professional. The definitions, terms, and coverage in a given policy may differ from those suggested here. No warranty or appropriateness for a specific purpose is expressed or implied.

Car insurance nonrenewal is when an insurance company decides not to renew your policy at the end of its term. Although being nonrenewed can feel jarring, it’s important to know that insurance providers don’t decide to nonrenew without a reason. And most importantly, your rates won’t automatically increase just because your policy was nonrenewed.

Auto Insurance Nonrenewal vs. Cancellation 

Before discussing reasons why your auto policy may not be renewed, it’s essential to understand the difference between nonrenewal and cancellation.

Cancellation typically happens at the beginning of the policy if required additional information is not provided or if there is undeclared driving activity for one of the drivers, for example. During the policy term, in most states, the insurer will only cancel for nonpayment of premium.

On the other hand, a car insurance nonrenewal is when your insurance provider chooses not to renew your policy for any number of reasons. Just like you have the option to change providers at the end of your policy term, your insurer can decide not to renew you as a customer. Although it varies, most states require insurers to notify you of your nonrenewal at least 30 days before your policy expires. This is known as a notice of nonrenewal, which will also provide the insurer’s reason for not renewing your policy.

Reasons Why Your Auto Insurance Was Not Renewed

There are various reasons why an insurance company may choose not to renew your auto policy. In some states, the valid reasons are established by law.

The most common reason has to do with your risk profile. If you’ve become a greater risk to insure than when you first applied, your provider may not want to renew. Filing multiple claims (especially for at-fault accidents), ongoing traffic tickets, or getting into too many accidents are all ways of being considered a riskier driver.

Insurance companies may also not renew at the end of your policy for a reason that’s no fault of your own. For example, an insurer may simply make a business decision to stop writing insurance in your city or state. In this situation, you have few options other than searching for a new provider even though you did nothing wrong.

Other situations that could lead to a nonrenewal include purchasing a higher-end car, moving across state lines, or DUI.

Fortunately, there is no automatic penalty for having your car insurance be nonrenewed. However, things like additional driving activity may affect your replacement coverage. There are some key steps to take to avoid further issues. 

What to Do After Receiving a Notice of Nonrenewal

Your car insurance notice of nonrenewal will explain why the insurer has decided to discontinue your policy. If you feel the reason is a mistake, contact the provider for information on how you can rectify the issue. If the cause is beyond your control, such as an insurer no longer operating in your area, quickly searching for a new policy is vital to keep your insured driver status.

Nearly every state legally requires drivers to carry auto liability insurance. After receiving a nonrenewal notice, begin searching for a new policy right away to avoid having a lapse in coverage. Your notice should include the date your current policy expires, so be sure any new policy takes effect before then. Regardless of your situation, you can find the best deal by comparing rates from different providers.

AIS Can Help You Find Coverage

Receiving a car insurance nonrenewal notice does not mean finding a new auto policy will be impossible. Depending on what triggered the nonrenewal, you may face little to no issues when searching for a new provider.

No matter the reason for your search, AIS can help you quickly compare auto quotes from our network of trusted insurance partners. With over 50 years of experience, our specialists can answer any questions you may have and will work to find a policy that best suits your needs. To learn more about the coverages available to you, call us at (888) 772-4247, or start your quote online.

The information in this article is obtained from various sources and offered for educational purposes only. Furthermore, it should not replace the advice of a qualified professional. The definitions, terms, and coverage in a given policy may be different than those suggested here. No warranty or appropriateness for a specific purpose is expressed or implied.