General Liability Insurance vs. Professional Liability Insurance

To safeguard your business effectively, it’s essential to understand the distinctions between general liability insurance and professional liability insurance. Both types of coverage serve distinct purposes and are essential for mitigating different kinds of risks.

What Is General Liability Insurance?

General liability insurance is designed to protect businesses from claims involving bodily injury, property damage and advertising injury. For example, if a customer slips and falls at your store or if your employee accidentally damages a client’s property, general liability insurance can help cover legal fees, medical expenses and repair costs. It’s often considered foundational coverage for any business that interacts with the public or operates in a physical location.

What Is Professional Liability Insurance?

Professional liability insurance, often referred to as errors and omissions (E&O) insurance, offers coverage for claims arising from the services or advice you offer in a professional capacity. It’s essential for individuals like consultants, attorneys, architects, and health care practitioners. If a client claims they suffered financial loss due to your negligence, an error, or a failure to meet expectations, this insurance helps cover the costs of legal defense and any resulting settlements.

How Do They Compare?

In essence, general liability covers physical risks, while professional liability addresses service-related risks. Many businesses, especially those offering both products and services, may need both types of insurance for well-rounded protection.

Learn More

Choosing the right coverage depends on your industry, the nature of your work and your exposure to different types of risks. Contact The Kimberlee Agency to tailor a policy to your specific needs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.