BUSINESS OWNER’S GUIDE to Liability Coverage General Liability vs Professional Liability VA Explained “1 in 3 Small Businesses will face a Professional Liability claim.” Why Liability Coverage Is Non-Negotiable in Virginia Nearly 1 in 3 small businesses will face a claim related to professional services. Some Virginia contracts now require proof of liability coverage before work begins. Without the right policies, even unfounded claims can drain resources with legal fees and lost time. Key takeaway: Liability insurance isn’t optional—it’s part of doing business responsibly in Virginia.
General liability what it does not cover Bodily injury Professional mistakes Property damage Missed deadlines (customer trips in your office) (you break equipment at a client site) Advertising injury (libel, slander, copyright issues) Client financial loss due to advice or services Virginia-specific note: General liability isn’t required by law, but is often required by landlords, vendors, and contracts. What General Liability Covers (and Doesn’t) Professional liability, also called Errors & Omissions (E&O), covers financial losses caused by mistakes in your services. Examples: Consultant’s advice leads to client’s financial loss IT firm misconfigures a system causing downtime Engineer’s design error delays construction Coach’s guidance results in a failed venture Trend alert: More Virginia clients—especially in government contracts—are requiring proof of E&O before signing agreements.
Ask yourself: Do clients visit your office or do you work in their space? You need general liability. Do you give advice, design, or manage projects where errors can cost money? You need professional liability. Do your contracts request both? You need both. Bundling Tip: Some insurers offer Business Owner Policies (BOPs) that combine general liability with property coverage, and let you add professional liability. “General Liability covers accidents. Professional Liability protects your work. Both matter.” Schedule a Policy Review with Tiffany
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