Tennessee Business Insurance

General liability insurance, known as Commercial General Liability (CGL), protects your business from another person or business’s claims of bodily injury, associated medical costs, and damage to property. Some examples of what could be covered are below:

• Bodily injury: In an attempt to garner publicity for a new product, a public relations consultant sent out promotional packages to several dozen journalists. The package contained a glass ball which shattered during shipment inside some of the packages. Several of the journalists and their staff members suffered injuries upon opening the packages, and sued the consultant. General liability insurance could protect public relations consultants against third-party claims of bodily injury, associated medical costs and property damage.
• Damage to client property: A software developer meets a client at a local coffee shop to review the updated software. The developer accidentally spills a large cup of tea on the client’s laptop and damages the hardware. General liability insurance could protect software developers against third-party claims of property damage, bodily injury and associated medical costs.
• Slander: A management consultant was discussing a former client with another consultant, and said some untrue things. The conversation was overheard and got back to the former client, who sued the consultant for slander. General liability insurance could protect management consultants against third-party claims of bodily injury, associated medical costs and property damage.

Learn more about general liability insurance costs for your business. 

Professional liability insurance, also known as errors and omissions insurance (E&O insurance), covers another person’s claims against businesses that provide professional and personal services. Some examples of what could be covered include:

• Negligence: An event planner sent a blast email invitation to thousands of her client’s customers inviting them to an event. The email contained the wrong date for the event. This mistake was not discovered until two days prior to the date on the invitation, at which point it was too late to reserve the venue for that date. The event has to be cancelled, resulting in lost deposits. Professional liability insurance could protect event planners against claims of negligence and will appoint an attorney to defend them, if needed, even if they haven’t made a mistake.
• Failing to perform services: An educational consultant was retained by a school system to design a curriculum to improve standardized test scores, particularly in math. The new curriculum was implemented, but test scores declined, so the school system sued the consultant. Professional liability insurance could protect education consultants against claims of negligence and will appoint an attorney to defend them, if needed, even if they haven’t made a mistake.

Learn more about professional liability insurance.