Vermont 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: A prospective client came to a consultant’s office to discuss an upcoming project. As the client was leaving, he leaned on a loose stair railing which gave way. He lost his footing and fell down the stairs, sustaining injuries which required hospitalization. General liability insurance could protect business consultants against third-party claims of property damage, bodily injury and associated medical costs.
• Property damage: An IT consultant was giving a presentation at a client’s site. During the presentation, he knocked an expensive projector off the conference table, breaking it. The client made a claim to recover the cost of the projector. General liability insurance could protect IT consultants against third-party claims of bodily injury, associated medical costs, and property damage.
• Damage to a client's property: As a consultant, you are often asked by your clients to purchase insurance as a contract requirement to begin work. This requirement protects you in the event you accidentally damage your client's property while working at their office. General liability insurance protects you against third-party claims for 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: A building inspector signed off on the inspection of a new school. Shortly after the school opened, the parents of a disabled child claimed that the school did not meet accessibility standards. The school system sued the building inspector. Professional liability insurance could protect building inspectors against claims of negligence and will appoint an attorney to defend them, if needed, even if they haven’t made a mistake.
• Project management out of control: You have been contracted by a client to come in and organize a project that has run past its due date and is over budget. You commit to bringing the project to completion. As you dig into the project you realize that the former project manager did not present your client with an accurate view of deliverables and you are facing a scope of work that is twice as long as your original projection. When you present this finding to your client they are angry and accuse you of not doing your due diligence of project review up front before signing the contract. Professional liability insurance protects you against claims of negligence even if you haven't made a mistake.

Learn more about professional liability insurance.