General liability insurance is generally designed to protect against claims filed against a business for bodily injury or property damage that arise out of the business's operations or products. It covers damages that result from accidents or other incidents that occur on the business's premises or at a location where the business has been doing work.
On the other hand, professional liability insurance is aimed at protecting professionals, including doctors, lawyers, and consultants, from negligence and other professional errors or omissions. This type of insurance protects against lawsuits filed by clients claiming that the professional caused them financial loss or injury as a result of providing inadequate or erroneous professional services.
For a small business, it is important to determine which type of insurance policy would best suit their needs. A small business that provides professional services should consider professional liability insurance, while a small business in the construction industry may require general liability insurance to cover damages that may occur during the course of their work.
It is also important to review the policy coverage and exclusions before obtaining any insurance policy. For instance, some professional liability insurance policies may not cover claims stemming from intentional acts of the professional or claims for bodily injury or property damage. Similarly, some general liability insurance policies may not extend coverage to professional services provided by the business.
If a small business owner is unsure about which insurance policy to obtain or whether their policy covers particular types of claims for damages, it is recommended that they consult with a licensed attorney or insurance professional to obtain appropriate guidance. By doing so, they will be able to make an informed decision about which type of policy to obtain and whether they should consider additional coverage or perhaps even a bundle package.
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