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

Choosing the right insurance for your business can affect your operations, reputation and finances. When it comes to liability claims, knowing the differences between general liability and professional liability can help you make informed decisions.

What Is General Liability Insurance?

General liability insurance helps your business address common risks that can arise during everyday operations. This coverage may respond to claims involving:

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

This type of policy is often a core coverage for businesses with physical locations or frequent customer interactions. It may also be required by landlords, clients or contractual agreements.

What Is Professional Liability Insurance?

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

• Alleged negligence: Claims that your advice or service caused a client financial harm
• Mistakes or oversights: Errors in your work that result in a client loss
• Failure to deliver services as agreed

Professional liability insurance can be important for consultants, accountants, healthcare providers and other professionals whose expertise is central to their work. It may also be required by licensing bodies or contracts.

Our Team Can Help

It’s important to account for liability risks with proper coverage. Contact Allsafe Insurance today to review your insurance needs and get personalized recommendations.