General Liability Vs. Professional Liability.. What’s the difference?

A question we are often asked is by many of our clients both new and old is, “What is the difference between general liability and professional liability insurance.” If I have one of these types of insurance, why would I need the other?

When looking at business insurance, the kinds of risk can be significant. So can the costs associated with these types of risks. Not only are you insuring the risk of your business, its property, and employees, but those who come into contact with your business and employees. Your general liability insurance will cover these risks. Professional liability will cover these risks as well, although much more specific to certain professions and scenarios.

A general liability policy typically insures against claims of bodily or personal injury or property damage. The general liability policy will cover the legal fees and costs associated with the defense, settlements, and property damages.

Professional liability insurance, also known as errors and omissions or E & O insurance covers negligence as it pertains to your professional services provided. Generally, although not always, it is a financial claim versus a physical claim of liability against the business. Typically, there is a professional code of conduct or standards which are used as a measure. Naturally, this is all subject to interpretation and is usually determined through the courts.

With either general or professional liability, one claim can be financially devastating to a business. In these days of numerous and frivolous law suits, it is important to reduce the risk of any business. work with your licensed insurance professional to determine if a professional liability insurance policy is necessary for your business and also for its’ employees who may also work with clients providing services.

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