What is the difference between general liability insurance and professional liability insurance?

General liability insurance and professional liability insurance are two different types of insurance coverage that provide protection to businesses and individuals against claims for damages or injuries caused by their actions. While both coverages provide protection against legal claims, there are distinct differences between the two types of insurance.

General Liability Insurance

General liability insurance, also known as commercial general liability insurance, is a type of insurance coverage that provides protection against claims of bodily injury, property damage, and personal injury. This type of insurance is designed to protect businesses against the high costs associated with legal claims brought by third parties, such as customers, vendors, and suppliers.

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, is a type of insurance coverage that provides protection against claims of negligence, errors, and omissions. This type of insurance is designed to protect professionals, such as doctors, lawyers, and accountants, against claims of malpractice or professional misconduct.

The main difference between general liability insurance and professional liability insurance is that general liability insurance provides coverage for claims of bodily injury, property damage, and personal injury, while professional liability insurance provides coverage for claims of professional negligence, errors, and omissions. Additionally, general liability insurance covers claims made by third parties, while professional liability insurance covers claims made by clients or customers of the insured.

It is important to note that both types of insurance coverage have their own specific limitations and exceptions. For example, general liability insurance typically does not cover intentional acts or criminal acts committed by the insured, while professional liability insurance may not cover claims resulting from deliberate acts of fraud or criminal misconduct.

In order to ensure adequate protection against legal claims, it is important for businesses and individuals to carefully review and compare their insurance policies to determine the coverage that best meets their needs. This may involve consulting with an insurance agent or attorney to help identify potential coverage gaps or limitations and to explore additional insurance options that provide the necessary protection.