Difference Between General Liability Insurance and Professional Liability Insurance

As a lawyer, I can provide legal advice regarding the difference between general liability insurance and professional liability insurance.

General liability insurance is usually purchased by businesses to protect themselves from third-party claims of property damage or bodily injury. These claims can arise in a variety of situations, such as slip and fall accidents or product liability lawsuits. General liability insurance usually covers the cost of legal fees, settlements, and judgments.

Professional liability insurance, also known as errors and omissions (E&O) insurance, protects individuals or businesses that provide professional services against claims of negligence, errors, or omissions. Professional liability insurance typically covers the cost of legal fees and settlements that may arise from claims against an individual or business for failing to meet professional standards, such as a doctor making a mistake during surgery or an accountant misfiling tax documents.

One key difference between general liability insurance and professional liability insurance is the type of claims that each policy covers. General liability insurance covers claims related to bodily injury, property damage, and personal injury, whereas professional liability insurance covers claims related to professional services.

Another difference is the types of businesses that typically require each type of insurance. General liability insurance is typically required for all types of businesses, including retail stores, restaurants, and other service-based businesses. Professional liability insurance, on the other hand, is often required for businesses that provide professional services, such as doctors, lawyers, accountants, and consultants.

It is important to note that both types of insurance policies often have limitations and exceptions, and the specific terms and coverage may vary depending on the insurance provider and the jurisdiction. Therefore, individuals or businesses interested in purchasing either type of insurance should carefully review the policy terms and consult with a licensed insurance agent, attorney, or other qualified professional to ensure they have adequate coverage for their specific situation.

In summary, general liability insurance and professional liability insurance provide protection against different types of claims and are typically required for different types of businesses. Understanding the differences between these types of insurance policies can help businesses and individuals make informed decisions about their insurance coverage needs.