As of the latest census numbers (2016), Florida’s economy ranks as the third largest in the nation. The state boasts an astounding 2 million businesses that are single proprietor or “non-employee” establishments, and 532,000 “employer establishments”, those who have paid employees.
Not surprisingly in our current business climate, Florida general liability insurance is required by the state for most business owners. This coverage protects business owners in the event of direct or indirect damages to another party and helps to pay for damages caused by the actions of employees or business owners.
Note: If you are unsure as to the insurance requirements for your specific business or industry, you can check with the Department of Business and Professional Regulation for further information.
There are two basic types of liability insurance that prudent Florida businesses should obtain. General Liability Insurance protects your business from another party’s claim of bodily injury, medical costs, or damage to property.
Professional Liability Insurance, known in some industries as errors and omissions insurance, covers claims against businesses that provide professional and personal services, such as real estate agents or accountants.
The following are some examples of the coverage you can expect when you carry liability insurance for your Sarasota and Manatee county business.
General Liability Insurance
You can expect legal defense costs against real or frivolous lawsuits, as well as judgment amounts up to the limit of your coverage to be paid by this policy. It is important to note that willful misconduct or gross negligence may be excluded. The types of events covered by General Liability Insurance include:
- Bodily injury: Bodily injury occurs when any harm is done to another party’s physical body. This can be as minor as a cut or bruise, or as major as disfigurement or loss of a limb. A slip and fall in your place of business or an injury sustained from a piece of your equipment are examples of this type of claim.
- Property damage/data loss: This type of claim arises when there is damage is caused to property not owned by the injuring party. Examples may include a roofing company employee breaking a window, or a business consultant erasing critical client data by mistake.
- Personal injury: Personal injury claims may include bodily injury, but also encompass situations where someone’s mind or emotions have been harmed. This may include situations of a breach of professional confidence or libel/slander of the affected party. For instance, if your employee has a fight with a client, and begins publicly defaming the client, a personal injury claim may result.
Professional Liability Insurance
Professional liability insurance can generally be expected to pay claims in cases of both alleged or actual negligence. Defense costs, temporary staff, and independent contractor costs may be covered, as well as damages resulting from the claim.
- Negligent acts: Negligence describes a situation in which a person acts in a careless (or “negligent”) manner, and they are accused of not acting with the standard of care expected for their profession. The negligence may result in physical, emotional, or financial harm. To prove negligence, certain elements must be present. There must have been an understood professional duty, and proof that the duty was breached as a result of the professional’s actions. There must also be legally recognizable injuries.
- Non-Negligent Situations: Professional liability insurance also covers legal costs if no mistake was actually made but the professional is still sued. Note that professional liability insurance does not generally cover intentional wrongdoing, illegal acts, employee injuries, employment disputes, false advertising or property damage.If you have questions about which type of insurance is recommended for your Sarasota or Manatee county business, as well as how much coverage you should obtain, call the experts at Anderson & Associates. We are happy to discuss your unique situation and to make sure that your business, money, home, and family are protected against lawsuits and claims.
