Both general and professional liability insurance have similarities in that they cover legal costs and settlements that could arise from your business’s operations. However, it’s the specific nature of the claims that will determine which policy will apply.
What does general liability insurance cover?
General liability insurance typically covers all of the following:
- Advertising injury claims, like libel, copyright infringement, and more
- Personal injury
- Property damage
What does professional liability insurance cover?
Professional liability, or Errors and Omissions (E&O), insurance typically covers all of the following:
- Malpractice
- Mistakes
- Misrepresentation
- Negligence
Do I need both general and professional liability coverage?
Many businesses do in fact need both types of coverage. In the vast majority of cases, general liability policies exclude any form of professional liability.
Another way to think about professional liability is to think about a business’s area of expertise. An architect must design a structurally sound and safe home. An accountant must provide accounting services in line with accepted industry standards and norms. When customers experience issues that they believe fall short of professional standards, the business could be at risk.
Understanding your company’s risks is the only way to truly know where you’re most vulnerable and where you’re protected. If you’re unsure of your needs, get in touch with our experts today. We’ll give you a free insurance evaluation, comprehensively examining your risks to determine what might be necessary to protect your business.
