General Liability Insurance vs. Professional Liability: Which One Do You Need

When running a business, understanding the insurance you need is crucial. Two common types are general liability insurance and professional liability insurance. While they may sound similar, they cover different risks and are essential for different reasons.

How Does General Liability Insurance Compare to Professional Liability Insurance?

General liability insurance can offer financial coverage for third-party claims involving bodily injury, property damage and personal injury that might happen on your business premises or as a result of your business operations. It can be crucial for businesses that engage with the public or operate in physical locations where accidents are possible.

On the other hand, professional liability insurance can help cover claims related to the professional services you provide. This can include negligence, misrepresentation or mistakes that result in financial loss for your clients. For instance, if you are a consultant and your advice leads to a client’s economic loss, professional liability insurance may help pay for the legal costs and any settlements. This insurance can be vital for service-based businesses where the risk of professional errors is higher.

Which Coverage Does My Business Need?

The answer depends on your business type and the risks you face. In many cases, businesses may need both types of insurance. Assessing your business’s specific risks and consulting with an insurance professional can help you determine the right mix of coverage to protect your business financially and effectively.

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For insurance near you, contact J.A. Faccibene & Associates, Inc..

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.