General Liability vs. Professional Liability: What’s the Difference?

General liability insurance is designed to cover your business against common third-party risks that can occur during everyday operations. This coverage may help with claims involving:

• Bodily injury, if a customer or third party is injured on your premises
• Property damage, if your business activities cause damage to someone else’s property
• Personal and advertising injury, such as claims of libel, slander or copyright infringement

General liability insurance is often considered a foundational policy for businesses, particularly those with a physical location or those that interact with clients and the public. Many landlords and clients may require this coverage before doing business with you.

What Is Professional Liability Insurance?

Professional liability insurance, sometimes called errors and omissions (E&O) insurance, focuses on claims related to the professional services or advice your business provides. This coverage can help with:

• Claims that your advice or service caused a client financial harm
• Errors in your work that result in a loss for your client
• Failure to deliver services as promised

Professional liability insurance may be important for consultants, accountants, real estate agents, healthcare providers and other professionals whose expertise is central to their business.

Key Differences and When You May Need Both

While both policies protect against certain third-party lawsuits, they cover different types of risks. General liability may address physical injuries and property damage, while professional liability may cover financial losses from professional mistakes. Many businesses benefit from having both types of coverage, especially if they interact with the public and provide specialized services.

How Our Team Can Help

Our team can guide you through the differences between general liability and professional liability insurance, so you can protect your business with confidence. Contact us today to get started.

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.