A General Liability Insurance Policy, also known as Commercial General Liability Insurance, protects the assets of your company in addition to covering for any obligations in case a partner, vendor, or visitor gets hurt on your property. The general liability insurance also pays for costs related to repairs of damages to your property. It further provides coverage for the some legal costs in the case of a lawsuit. In addition, most false claims including libel, slander and copyright infringement are covered by a general liability insurance.
As for the Directors and Officers Liability Insurance Policy, it protects your company in case of legal actions resulting of allegations of a wrongful act. D&O insurance policies usually concentrate a lot of the coverage on the defense costs.
As a business owner, you do face increased liability concerns. Regardless if of the stage and/or size of your company, a general liability insurance policy should provide a coverage that will protect for most unanticipated situations. That being said, you need to be aware that General Liability Coverage may fall short for directors and officers of your company. General Liability Insurance often excludes Omissions of Directors or Officers (D&O).
It is very important to read and understand your coverage but most importantly all the exclusions so that you can compare your options before purchasing a specific policy.