General Liability vs. Professional Liability Insurance
Many small business owners want to know the difference between general liability and professional liability insurance. Understanding how they compare and what they cover is key to protecting your business. It's possible that you could benefit from having both types of insurance.
Progressive Commercial is here to help you find the right policy to meet your needs. Start an online quote or give us a call to work with one of our in-house experts.
How they're the same
Designed to protect your business, both general liability and professional liability insurance can:
- Safeguard from potential lawsuits: General and professional liability insurance minimize the impact on your business's operations after a lawsuit or legal claim.
- Provide financial security: Both general and professional liability insurance can protect your business's financial health. They minimize downtime and get you back in business faster after a claim.
- Meet contractual requirements: Some clients or employers set insurance requirements to protect their interests. This means before you can start a project or enter a working relationship, they'll make sure you have a certain amount of general liability and professional liability insurance coverage.
- Address company-specific needs: General and professional liability insurance can be customized to fit your business. We'll consider things like company size, industry, and risk exposure when determining the right coverage limits and protections.
How they're different
General and professional liability insurance are differentiated by the types of risks they can cover:
- Bodily injury and property damage: General liability insurance protects your business from claims of physical harm or property damage arising from your daily operations. It also covers things like advertising injury, damage to rented properties, and product-completed operations.
For example, a customer injures themselves falling through a weak spot on a recently constructed deck and decides to take legal action against the contractor for the injury and flawed construction. - A client's indirect losses: If your business offers professional advice or services, professional liability insurance can protect against claims of negligence or substandard work. Also known as errors and omissions insurance (E&O), this coverage is generally related to financial loss rather than physical injury or property damage. It also protects against risks like inaccurate advice and breach of contract.
For instance, a consultant is sued for giving bad advice that leads to a financial setback for their client.
Which policy makes sense for your business?
When choosing general and professional liability insurance, you'll want to consider the nature of your business, the risks it faces, and the services it provides. In some cases, you might need both coverages.
Follow these steps when determining which types of insurance your small business needs:
- Compare liability coverages
- List your business activities
- Evaluate professional risks
- Review past claims
- Consider legal and contractual requirements
- Consult with a Progressive Commercial agent
Why choose Progressive Commercial?
Progressive Commercial offers a full range of insurance products at a fair price and with customer service you'll love. Small businesses have trusted us to provide the protection they need for over 50 years.
If you need general liability insurance, professional liability insurance, or both, our specialists are here to make sure you're covered.
Common questions about general and professional liability insurance
Do I need both general and professional liability insurance?
Many businesses find that they need both general liability and professional liability insurance to fully protect against the range of risks they face.
For example, companies that offer professional advice or services and engage directly with clients typically require both coverages.
When would I use commercial general liability insurance vs. professional liability insurance?
The insurance you use depends on the nature of the claim. General liability helps with events like bodily injury, property damage, or advertising injury.
By contrast, professional liability insurance covers claims related to negligence, failure to deliver services, misrepresentation, or bad advice.
How do I decide between general and professional liability insurance?
When deciding between general and professional liability insurance it's important to consider the risks your business faces and the nature of the claims you might encounter. In many cases, businesses benefit from having both coverages to protect their company fully.
Even after selecting a policy, it's a good idea to review your coverage regularly. As your business evolves and changes, your insurance needs do, too.
More information
