What is the difference between a general liability insurance policy and a professional liability insurance policy?
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Understanding General Liability Insurance vs. Professional Liability Insurance
As a lawyer, I can provide legal advice on the difference between a general liability insurance policy and a professional liability insurance policy.
General Liability Insurance
General liability insurance policies typically provide coverage for:
- Bodily injury
- Property damage
- Personal and advertising injury
- Products/completed operations liability claims
These policies are typically designed to protect businesses from third-party claims arising out of their normal business operations, such as slip and fall accidents or damage to customer property.
Professional Liability Insurance
On the other hand, professional liability insurance policies are more specific and provide coverage for claims arising out of professional services. This type of insurance is also known as errors and omissions (E&O) insurance. Professional liability insurance policies protect businesses and individuals against claims of negligence, breach of contract, and other errors or omissions in their professional work.
For example, a physician might hold a professional liability insurance policy that protects against claims of malpractice.
It's important to note that general liability insurance policies do not typically cover professional services rendered by the policyholder. Likewise, professional liability insurance policies do not typically cover bodily injury or property damage claims. Therefore, businesses need to understand the differences between the two types of policies and ensure they have adequate coverage for each.
There may be limitations or exceptions to the coverage provided by each type of policy, depending on the specific terms and conditions stated in the policy. For example, a professional liability insurance policy may have a specific exclusion for intentional acts or fraud.
It's important for businesses and individuals to carefully review their insurance policies and work with a licensed insurance agent or attorney to ensure they have the appropriate coverage for their needs.
Conclusion
In conclusion, a general liability insurance policy provides coverage for bodily injury, property damage, personal and advertising injury, and products/completed operations liability claims, while a professional liability insurance policy provides coverage for claims arising out of professional services.
It's essential for businesses and individuals to understand the differences between these policies and ensure they have adequate coverage for their specific needs.
