What is the difference between a commercial general liability policy and a professional liability policy, and which one do I need for my business?

The main difference between a commercial general liability policy (CGL) and a professional liability policy (PL) is the scope of coverage they provide. While a CGL policy covers a broad range of liability exposures, including property damage, bodily injury, and personal injury, a PL policy is specifically designed to cover claims arising from errors, omissions, or negligence in the delivery of professional services.

A CGL policy provides coverage for a business's general liability exposures, such as slip and fall accidents, property damage, and advertising injury. It typically includes coverage for third-party bodily injury and property damage claims arising from the insured's premises, products, or operations. A CGL policy may also provide coverage for personal and advertising injury claims, such as libel, slander, and copyright infringement.

While a CGL policy may provide some coverage for professional services, it typically excludes coverage for claims arising from the rendering of professional services. In other words, a business that provides professional services, such as a doctor or lawyer, may not be adequately protected by a CGL policy alone.

A PL policy, on the other hand, is designed specifically to cover claims arising from the delivery of professional services. It provides coverage for claims arising from errors, omissions, or negligence in the performance of professional services. For example, a PL policy will cover a medical malpractice claim against a doctor or a legal malpractice claim against a lawyer.

If your business provides professional services, a PL policy is the best option to protect against claims arising from the delivery of those services. A CGL policy may provide some coverage, but it is not designed specifically to cover professional liability.

It is important to note that there may be limitations or exceptions to the coverage provided by a PL policy, and it is important to review the policy carefully to ensure adequate protection. Additionally, businesses may need to consider other types of insurance, such as cyber liability or employment practices liability insurance, depending on their specific risks and exposures.

In conclusion, if your business provides professional services, you should consider a PL policy to protect against claims arising from errors, omissions, or negligence in the delivery of those services. A CGL policy may provide some coverage for general liability exposures, but it is not designed to cover professional liability. It is important to review your insurance needs carefully and consult with a licensed insurance broker to ensure adequate coverage for your business.