Professional liability insurance, also known as errors and omissions (E&O) insurance, provides protection against claims of professional negligence or mistakes made during the course of performing professional services. This type of insurance is typically purchased by professionals who provide advice, expertise, or service to clients, such as doctors, lawyers, and accountants. Professional liability insurance covers claims related to errors, omissions, or negligence that result in financial harm to a client.
General liability insurance, on the other hand, provides protection against claims of bodily injury or property damage that occur in the course of a business's regular operations. This type of insurance covers claims related to injuries or damages to third parties, such as customers or visitors to a business's premises. General liability insurance covers claims of accidents or property damage that are not related to professional services or advice.
The main difference between professional liability and general liability insurance is that professional liability insurance covers claims related to mistakes or negligence made during the course of providing professional services, while general liability insurance covers claims related to bodily injury or property damage that occur during regular business operations.
It is important to note that there may be limitations or exceptions to the coverage provided by professional liability or general liability insurance. For example, intentional acts or criminal acts are typically excluded from coverage under insurance policies. It is important to carefully review the terms of any insurance policy before purchasing to understand what is and is not covered.
If you are unsure of the coverage provided by your professional liability or general liability insurance policy, it is recommended that you consult with a licensed attorney or insurance broker for further guidance.
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