general liability vs professional liability

Differences Between Professional Liability and General Liability

When conducting business, one important safeguard that must be put into place right away is an insurance plan that adequately meets a business’s needs. However, with so many options, how does one choose? One important thing is to understand the differences of general liability vs professional liability and how they can benefit a business.

Coverage Under Professional Liability

Professional liability covers any incidents occurring directly from a service provided by a business, not necessarily from a business’s standard day-to-day functions. Even small human errors can result in costly litigation that may not be covered under a general liability plan. The more a business participates in providing services, the more likely professional liability, or Errors and Omissions coverage is recommended.

Protections Under General Liability

General liability is a standard coverage most businesses will need to establish. It primarily covers legal fees for incidents businesses may be likely to encounter and can be invaluable since a single lawsuit can cause permanent irreparable damage without coverage. The types of incidents businesses may be likely to encounter include:

  • Libel and slander
  • Medical costs and bodily injuries
  • Actions resulting in damage to property

After understanding the differences of general liability vs professional liability, it can be easier to understand what plan will work best. Since all business practices and needs are different, speaking to an experienced agent can help get a customized plan, and include the best features of both types of coverage.