General Liability vs. Professional Liability: What’s the Difference? 

Two common options of business insurance are general liability and professional liability insurance. Though the names sound similar, they serve different purposes.

What Does It Cover?

General liability insurance may cover physical risks, including bodily injuries, property damage or accidents that happen on your premises or as a result of your operations. For example, general liability may cover the associated third-party expenses if a customer slips and falls in your store. Professional liability insurance addresses claims related to the services you provide. It may cover errors, omissions or negligence in your professional advice or work.

General liability policies often focus on third-party claims of physical harm or damage. Professional liability policies focus more on financial losses a client claims to have suffered due to your service, advice or failure to deliver according to expectations.

Who Needs It?

General liability is common across a wide range of businesses. It’s typically one of the first types of insurance businesses consider.

Professional liability is more specific. It’s generally used by those in service-based industries who could be held responsible for mistakes in the work they deliver.

Contact Us

Universal Insurance Agency in Dayton, Ohio, offers numerous business insurance. Contact our team today to learn more.

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.