In continuation of last week’s blog, we, at Brazleton Insurance Group, will continue to define business insurance terms in order to help you understand their meanings better.
Fiduciary– If another person has placed trust in you to manage and protect their property or money, then you are known as the fiduciary. Due to the amount of responsibility behind a fiduciary, one may wish to have fiduciary liability insurance, which covers any legal liability from claims relating to pensions, 401(k)s, or any other benefit plan.
General liability insurance– This is basic coverage that will protect you from liability, especially in cases of bodily injury or property damage to third parties. It is critical that, as a business owner, you invest in an effective general liability insurance policy.
Primary policy– A primary policy is the first response to a claim, which means that if you have secondary policies, they would be accessed once your primary policy limits have been reached.
Professional liability insurance– This policy protects you in case there are mistakes in the services that you provide, and should be tailored to your specific business. This type of insurance is also referred to as errors and omissions (E&O) insurance.
Umbrella insurance- With umbrella insurance, you are protected from a multitude of claims. It also extends your liability insurance, which helps to cover major claims and potential lawsuits.
Waiver of subrogation– If you have a client that asks you to waive subrogation rights, assuming that you agree, then this means that if you and that client are sued and your insurer pays, then your insurance company cannot go after your client in order to recover their losses.