General Liability vs. Professional Liability
Having a business comes with its risks. A customer could slip and fall at your location, an employee could accidentally damage a client’s property, or a customer could claim that your professional advice caused them financial harm. While business owners may take every precaution possible, accidents are still possible. Two coverages that are often confused are general liability insurance and professional liability insurance. Both can help protect a business from costly liability claims, but they are designed to cover very different types of risks.
What Is General Liability Insurance?
General liability insurance is one of the most common types of coverage for businesses. Its purpose is to protect a company against claims involving bodily injury, property damage, and certain personal or advertising injuries that come from business operations. General liability insurance has protection for:
- Bodily injury
- Property damage
- Personal injury
- Medical payments
What Is Professional Liability Insurance?
Professional liability insurance protects businesses claims that come from the professional services or expertise they provide. It is sometimes called Errors and Omissions insurance. Professional liability insurance may help when a client alleges that your business made an error, failed to perform a professional service properly, or provided advice that resulted in a financial loss.
Generally, professional liability claims include:
- Professional mistakes or errors
- Incorrect advice
- Missing deadlines
- Negligence
Can a Business Need Both?
Many businesses face both general and professional liability risks. Having only one type of coverage could leave important exposures uninsured. For example, if a client visits the office and slips, the claim would be addressed by general liability insurance. If another client later claims that the consultant provided incorrect advice that caused the company financial loss, that will fall under professional liability insurance. Businesses should investigate both their physical operations and the professional services when trying to figure out which coverage they need.
General liability and professional liability insurance both play important roles in protecting businesses. General liability insurance protects against third-party bodily injury and property damage, while professional liability insurance focuses on claims involving mistakes or failures in professional services. Every business has different risks. Reviewing your insurance regularly can help identify potential gaps and make sure your coverage continues to match the way your business operates.
You can experience the benefits of being a part of a full-service Independent Insurance Agency today! Simply contact Briggs Agency, Inc. if you are interested in an insurance review at 219-769-4840 or visit our website at www.BriggsAgency.com. We look forward to hearing from you!
Blog written by: Sara Trajanoska
