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General Liability vs Professional Liability

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Understanding how General Liability and Professional Liability insurance coverages compare and contrast will help you make the best decisions to protect your business. You may find you need both policies to be properly covered.

What is General Liability insurance?

General Liability insurance covers your business from some common lawsuits, including:

  • Bodily injuries that incurred on your commercial premises or while you were at a third-party site
  • Damage you caused at a third-party property
  • Advertising injuries (e.g. slander, libel, misappropriation, and copyright infringement)
  • Coverage for claims arising out of client products and completed operations as it relates to a third party bodily injury or property damage

General Liability insurance pays for your legal expenses including lawyers’ fees, court costs, and settlements or judgments.

Any business owner, no matter their industry or the size of their business, can face these claims. 

What is Professional Liability insurance?

Professional Liability insurance is sometimes referred to as “Errors and Omissions Insurance”

Professional Liability Insurance focuses specifically on lawsuits that allege a business:

  • Provided negligent professional services
  • Made mistakes or omissions

This coverage is especially important for service providers, but many businesses can benefit from the added coverage.

The insurance carrier has a duty to defend even in the case of a frivolous lawsuit

KEY TAKEAWAYS

  • Both policies cover certain liabilities, but they don’t cover the same liabilities
  • As a rule of thumb, General Liability covers physical damages and Professional Liability covers financial losses
  • Either policy may be required by client contracts

NEXT STEPS

  • Contact your Cox Insurance commercial team to discuss your options and coverage limits for General Liability and Professional Liability insurance.

Cox Insurance provides Home, Auto, Liability and Commercial insurance that exceeds expectations. For a personalized quote, please contact us here.

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