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Home » General Liability Insurance vs. Professional Liability Insurance: What’s the Difference?
July 17, 2024
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General Liability Insurance vs. Professional Liability Insurance: What’s the Difference?

When it comes to financially safeguarding your business, understanding the nuances between general liability insurance and professional liability insurance is crucial. General liability insurance can financially shield against physical risks, while professional liability insurance focuses on the more abstract realm of specialized services and advice. However, there are more details to understand.

What Is General Liability Insurance? building, company, high rise

General liability insurance, also known as business liability insurance, can help safeguard your business against property damage or bodily injury claims. It may cover situations where your business might be held liable for third-party harm. Specifically, general liability insurance can help with the following scenarios:

  • Third-party bodily injury—If a customer slips and falls in your store, they can sue your business. Bodily injury liability coverage can help pay for your legal costs, and medical payments coverage may help pay for the third party’s medical costs.
  • Third-party property damage—When you or your employees work at a client’s house or are trusted with customer property, there’s a risk of causing property damage. Property damage liability coverage can assist with repair or replacement costs if your business damages someone else’s belongings.
  • Reputational harm—If someone sues your business for libel or slander due to something you or your employees said, general liability insurance can cover your legal defense costs.
  • Advertising injury— Your business could face a lawsuit for copyright infringement. For example, if you include a photographer’s image in your advertisements without permission, the photographer could take legal action against your business.

Remember that general liability insurance doesn’t cover work-related injuries to employees (which workers’ compensation insurance handles) or damage to your business property (which commercial property insurance addresses).

What Is Professional Liability Insurance?

Professional liability insurance, frequently called errors and omissions insurance, can offer financial coverage for businesses against liability related to professional mistakes or negligence. If someone accuses your business of making an error, this insurance can help protect you by helping to cover expenses related to the claim.

Liability Insurance in Bremen, GA

In summary, general liability insurance can shield against financial losses related to bodily injury, property damage and personal injury claims. In contrast, professional liability insurance focuses on financially protecting professionals from claims related to their specialized services or advice. Evaluate your business requirements and seek advice from an Alliance Insurance & Realty insurance professional to determine the right coverage for your situation.

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.

 

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