Many business owners commonly confuse general liability and professional liability insurance coverage, wondering why they need coverage for either or in some cases both. However,  Selecting the right insurance coverage for your business isn’t easy. Depending on your risks, you may need to buy one or both policies in order to provide the best protection to your company. Here’s everything you should know about your business insurance options. 

What Are They And Which One Fits My Business? 

General Liability Insurance

General liability insurance is a great primary defense against having to pay out-of-pocket third-party claims for work-related accidents. This insurance covers a variety of potential problems such as job accidents, accidents to non-employees, and property damage. It also includes coverage for personal and advertising injury, which includes any harm that is brought upon from a copyright infringement, libel, slander, or invasion of privacy. Acquiring general liability insurance provides a safeguard from unexpected expenses due to legal claims from third parties. It’s also important to keep in mind that general liability insurance is also referred to as “commercial general liability” (CGL) insurance or “business liability insurance.” 

Professional Liability Insurance

Depending on your coverage needs, professional liability insurance can serve as a complement to your general liability insurance coverage. Professional liability insurance is known as error and omissions insurance and is designed to focus specifically on lawsuits that stem from professional services.

Professional liability insurance protects your business financially if a client claims the work done is unsatisfactory, incomplete, or was not done at all. Additionally, companies in the legal, engineering and accounting space essentially need professional liability insurance, even though any professional service company would benefit from pursuing this coverage. 

Picking The Best Option For You 

Both general liability and professional liability insurance cover a variety of common business risks.Though similar in nature, the primary dividing line between the two coverages is physical damage. General liability insurance protects the insured from lawsuits over physical damage, like slipping and falling, while professional liability concerns itself with the lawsuits over financial losses that result from one’s service. For those who operate in a professional services industry and rent or own commercial property that is open to the public, both policies are necessary to properly protect your business. 

Finalizing Your Policy

After exploring the differences between general liability and professional liability insurance coverage, you may still find yourself confused about which policy is best for your business. At Biscayne Risk & Insurance, our goal is to help you navigate the complexities of the business insurance world. We are passionate about delivering quality service to empower small/medium-sized businesses that are typically neglected by the insurance brokerage industry. For more information on how we can help, feel free to contact us on our website today.