professional liability insurance

Understanding the Differences in Professional and General Liability Insurance

If you own a business that is not considered a medical practice or law practice, you may think your only insurance needs may be general liability insurance and worker’s compensation. However, if your business provides services such as transportation, accounting, financial services or construction you may need professional liability insurance to cover those things that your general policy may exclude.

General Liability Coverage

General liability insurance can protect businesses from lawsuits for things that may normally occur through the ordinary operation of a business. This may include property damage, bodily injury, copyright infringement, slander or libel. It may not cover any specific actions taken or omitted by professionals employed by the business.

Professional Liability Coverage

Professional liability coverage can also be referred to as malpractice insurance. It can cover the risks and liabilities that are specifically related to the services provided by the business such as negligence or errors and omissions. A construction company can be sued for negligence if a structure is not built to code and the owner of that structure suffers damages as a result. A financial services business can be sued if they fail to reveal important information to a client or provide incorrect financial advice. A good professional liability insurance policy can cover these types of liabilities that a general policy may not.