Professional Liability vs. General Insurance Liability

As a business owner, having coverage against liability is not a luxury. Both General Liability Insurance and Professional Liability Insurance can offer the needed coverage for your business and employees, but the two policies are quite different. General Liability Insurance is a type of insurance policy that protects a business from damages that resulted from someone getting injured on the premises of the business. It covers the cost of property damage, bodily injury, medical expenses, defense, libel, slander, judgments and settlements which resulted from someone getting injured in the business facility.

Professional Liability Insurance protects businesses in the event that they are sued due to malpractice, error or negligence in the services rendered to a customer. It covers the costs of settlement, defense, and judgment. Typically, this coverage applies to professions where a professional code of conducts exists or where there are standards which are used in measuring and evaluating the quality of the services delivered.

Even though both Liability Insurance policies protect businesses against liability, they don’t protect the business against the same liability. Professional Liability Insurance offers coverage for businesses against lawsuits resulting from malpractice, error or omission in services delivered to a customer while General Liability Insurance offers protections against lawsuits resulting from damage or injury while in the business’s premises.

Also, a General Liability Insurance policy benefits manufacturers, construction professionals as well as retailers. It protects the insured from lawsuits which arise from physical damaged sustained by someone over finished works. On the other hand, Professional Liability Insurance only provides coverage for lawsuits over financial losses. The dividing line between the two Liability Insurance is “physical damages.”

In most cases, both General Liability Insurance and Professional Liability Insurance are needed to adequately protect your business against the high cost of unexpected lawsuits. To explore the various Liability Insurance coverages which are needed to keep your business up and running, you can call or contact IDA(Independent Distributor Alliancetoday).