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General Liability vs. Professional Liability:
General Liability vs. Professional Liability:
What’s the Difference?
What’s the Difference?
As a business owner, protecting your company from lawsuits and unexpected costs is critical. But when it comes to liability insurance, many business owners get confused between general liability and professional liability coverage. While both protect your business, they cover very different risks. Here’s how to tell them apart—and which one your business might need.
General Liability Insurance
The Basics
General liability is your first line of defense against common accidents and third-party claims. It covers:
Bodily injury – A customer slips and falls in your office.
Property damage – You or your employees accidentally damage a client’s property.
Advertising injury – Claims like libel, slander, or copyright infringement.
Who Needs It?
Retail stores, restaurants, and offices where customers visit in person.
Contractors, service providers, or any business interacting with the public.
Quick Example:
If a client trips over a power cord in your office and breaks their arm, general liability pays for medical bills and legal fees.
Professional Liability Insurance
The Basics
Also known as Errors & Omissions (E&O) insurance, professional liability protects against mistakes or negligence in your services. It covers:
Errors – You make a mistake that costs a client money.
Omissions – You fail to deliver promised services or advice.
Negligence claims – A client claims your work caused financial harm.
Who Needs It?
Consultants, accountants, real estate agents, and other service-based professionals.
Businesses that give advice, recommendations, or specialized services.
Quick Example:
If a marketing consultant’s ad campaign accidentally violates a client’s trademark and causes financial loss, professional liability insurance covers legal costs and settlements.
Key Takeaway:
General Liability = Physical accidents, property damage, and third-party injuries.
Professional Liability = Financial losses due to mistakes, errors, or bad advice.
Every business faces different risks. Make sure you have the right coverage before an unexpected claim threatens your finances. Talk to your insurance advisor today for a policy review.
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