What is the difference between general liability insurance and professional liability insurance?

General Liability Insurance vs. Professional Liability Insurance

General liability insurance and professional liability insurance are two different types of insurance policies that businesses may need to protect themselves from different types of risks.

General Liability Insurance

General liability insurance is designed to protect businesses from claims that arise from bodily injury or property damage that might occur as a result of their operations, products or services. This type of insurance provides coverage for claims that include bodily injury, property damage, medical expenses, and legal defense costs. This type of insurance policy is meant to provide coverage for accidents that are caused by negligence on the part of the policyholder.

Professional Liability Insurance

Professional liability insurance is more commonly known as errors and omissions (E&O) insurance. This type of insurance provides coverage for claims arising from professional mistakes, errors or negligence. This can include claims arising from errors in providing professional advice, mistakes in providing services, or errors in performing services. This type of insurance policy is meant to cover claims that arise from the professional negligence of the policyholder.

The Main Difference

The main difference between general liability insurance and professional liability insurance is the type of risk that each policy covers. General liability insurance is designed to protect businesses from claims that may arise from accidents or incidents that occur as a result of their operations. Professional liability insurance, on the other hand, is designed to protect businesses from claims that arise specifically from professional negligence.

It is important to note that while these two types of insurance policies cover different types of risks, they can work together to provide a comprehensive insurance program for a business. A business may need to purchase both types of policies to ensure they are fully covered for all types of risks they may face.

Limitations and Exceptions

In terms of limitations or exceptions, it is important to review the terms and conditions of each policy carefully to understand the specific coverage and any exclusions or limitations that may apply. It is also important to note that insurance policies do not cover intentional acts or criminal behavior.

If a business has questions about their insurance coverage or needs assistance in selecting the right type of insurance policies, it is recommended to consult with a licensed insurance broker or attorney who can provide guidance on this matter.