What’s the Difference Between General Liability and Professional Liability?

There are many different things to consider when shopping around for insurance. It’s important to know the difference so you can make the best choice for you and your business.

General Liability

General Liability Insurance covers common risks that can happen to any business, it helps protect you from bodily injury, property damage, libel, and slander. This is considered the first line of coverage when it comes to owning a business. However, general liability insurance policies have different levels of coverage. Excess liability coverage can be purchased to cover any other claims that are not covered in the general liability insurance policy. General liability insurance can help cover cost related claims such as, medical costs, reputational harm, advertising injuries, and damage to rented property.

Common Risks Covered:

  • Bodily Injury
  • Property Damage
  • Libel/Defamation
  • Slander

Cost Related Claims:

  • Medical Cost
  • Reputational Harm
  • Advertising Injuries
  • Damage to rented property

Professional Liability

Professional Liability Insurance protects such as accountants, lawyers, and physicians against negligence and other claims initiated by their clients. Professionals such as doctors use the type of insurance to protect themselves against claims of negligence or malpractice. Professional liability insurance also can refer to medical malpractice insurance for medical professionals and errors & omissions insurance for real estate agents. Professional liability insurance does not cover criminal prosecution, any form of legal liability under civil law, and cyber liability.

Claim Covered:

  • Negligence
  • Misrepresentation
  • Inaccurate advice

There are pros and cons to both options. Take time to weigh out the options, as the choice is ultimately up to you and the needs of your business.