Difference to Know Between: General Liability vs. Professional Liability

It is hard to figure out the types of insurance liability you need as a business owner. The right policies depend on the types of risk that the company faces.

The big and small businesses face liability risks, but the type of liability changes based on what you do. Therefore, each business owner needs to assess what business insurance they need. Our small business insurance company is in corpus Christi tx, protecting your financial assets from certain liabilities. 

Both types of liabilities can lead to a lawsuit; that is where general and professional liability insurance comes into play.

The definition of general liability insurance and its risk coverage

The general liability protects the company from a basic lawsuit that any business could face. It protects where the third party sues your business. Moreover, general liability insurance coverage protects your business from injury or damages. It covers:

Physical injury 

It is known as bodily injury, which refers to physical harm by a third party. It does not include employee injuries. But workers' compensation insurance helps to cover work-related injuries.

Property damage

Protects against business liability for damage to the property belonging to someone during the work.

Advertising injuries

Face lawsuit for copyright infringement

The professional liability insurance and its risk coverage

The professional liabilities and their coverage are called errors and omissions insurance, depending on the industry. Its coverage focuses specifically on the lawsuit that originates from professional services.

Even this policy is vital for service providers to carry and benefit small business owners from its coverage. In addition, professional liability insurance helps to cover business legal defence costs.

• If a web developer makes some mistakes on a client's e-commerce website, the result is missed sales opportunities.
• Bookkeeper makes a clerical error, costing their clients thousands of dollars.

The overlaps of general and professional liability insurance

To give a closer look at the same base cover.

• Covering accidental damage, not intentional, means that your insurance won't cover you if you attack someone.
• Cover damage to third parties. Do not include damage to the insured or insured's property.
• Restrict coverage to coverage territory. It means you are not covered if you go outside the particular domain.
• Cover financial loss. Involved in a lawsuit, both coverages help with legal fees and court costs.

Insurance differences between general liability and professional liability

Keep in mind that given some differences between general and professional liability insurance below.

General liability and professional liability different risk coverage

The general liability insurance can spare the business from lawsuits over a visitor dropping on your commercial property. Professional liability insurance can protect you from the high cost. The high price of alleged professional mistakes causes third-party financial losses.

The general liability covers physical damages, while professional covers financial damages

Sometimes, a general liability policy includes product liability insurance for construction professionals, retailers, manufacturers, and other business owners. This coverage even protects the insured from lawsuits over ruined work that physically harm. Though it may be the professional liability domain, physical damage is dividing the line. Professional liability insurance concerns itself with lawsuits over the financial loss. That results from someone's products or services.

Are general and professional liability policies always separate?

No, it is not always separate. For example, a general liability policy can include an endorsement that changes the policy to include professional liability coverage. In that case, you want to be sure that you are getting a policy specific to your business that needs to know you have covered the case of a claim. When you want to buy a small business insurance policy, our experts clarify what it covers and what does not.

In most cases, you will need both policies, which adequately protect your business from the high cost of unexpected lawsuits. For example, if you work in the professional services industry, your commercial property is for the public. 

When you avoid any of these policies, we never advise you to go with this route. We never know when someone could have an accident in your building. So, visit the Homeowners insurance quote to know the liability coverage options or the insurance cost and then decide.

Which policy is perfect for your business?

In most cases, you will need both policies, which adequately protect your business from the high cost of unexpected lawsuits. For example, if you work in the professional services industry, your commercial property is for the public. 

When you avoid any of these policies, we never advise you to go with this route. We never know when someone could have an accident in your building. So, visit the Homeowners insurance quote to know the liability coverage options or the insurance cost and then decide.