What is the difference between general liability and professional liability insurance?
When it comes to protecting your business‚ insurance is a crucial aspect to consider; Two common types of insurance coverage that businesses often need are general liability and professional liability insurance. While both provide coverage for potential risks and liabilities‚ they have distinct differences based on the nature of the risks they cover.
General Liability Insurance
General liability insurance‚ also known as commercial general liability (CGL) insurance‚ is designed to protect businesses from claims related to bodily injury‚ property damage‚ and personal injury. It provides coverage for accidents and incidents that occur on your business premises or as a result of your business operations.
Here are some key features of general liability insurance⁚
- Bodily injury⁚ If a customer slips and falls in your store‚ general liability insurance can cover their medical expenses and any legal fees if they decide to sue.
- Property damage⁚ If your business causes damage to someone else’s property‚ such as accidentally breaking a valuable item at a client’s location‚ general liability insurance can cover the cost of repairs or replacement.
- Personal injury⁚ This includes claims of slander‚ libel‚ copyright infringement‚ or false advertising.
- Advertising injury⁚ If your business’s advertising causes financial harm to another business‚ general liability insurance can provide coverage for legal expenses and damages.
General liability insurance is essential for businesses that interact with the public‚ have physical locations‚ or perform services at client sites. It provides protection against common risks and accidents that can occur in day-to-day business operations.
Professional Liability Insurance
Professional liability insurance‚ also known as errors and omissions (E