General Liability vs. Professional Liability: Which Does Your Business Need?

Understanding the types of insurance you need is crucial when running a business. Two common types are general liability and professional liability insurance; each serves a different purpose and protects against different risks.

What Is General Liability Insurance?

General liability insurance is designed to protect your business financially from claims involving bodily injuries and property damage. This type of insurance is essential for businesses that interact with the public, clients or customers. For example, general liability insurance can cover medical expenses and legal fees if a customer falls in your establishment. It can also cover damage to someone else’s property caused by your business operations. Essentially, it safeguards your business from the financial fallout of accidents and injuries that occur on your premises or as a result of your business activities.

What Is Professional Liability Insurance?

Professional liability insurance can be necessary for businesses that provide professional services or advice. This insurance can financially protect against claims of negligence, misrepresentation or mistakes in your services. For instance, if a client alleges that your advice led to financial loss, professional liability insurance can help cover costs related to legal defense, and any settlements or judgments. This type of insurance is essential for professionals, such as consultants, lawyers, accountants and architects, who have a higher risk of being sued for professional errors.

Which One Does Your Business Need?

The answer depends on the nature of your business. If your business involves physical interaction with the public or clients, general liability insurance is a must. It can financially cover a broad range of potential incidents that could occur on your premises. However, if your business provides specialized services or advice, professional liability insurance is essential to protect against claims related to the quality of your work. In many cases, businesses may need both types of insurance to be fully protected. Assessing your business activities and risks can help you determine the right coverage to safeguard your business effectively.

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Contact Facil Insurance LLC today to discuss your business insurance needs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.