General Liability Vs. Professional Liability Insurance A Comparative Review

2. As a business owner, deciding whether to invest in general liability or professional liability insurance can be confusing. Both types of insurance provide crucial protection, but they cover different aspects of your business. This guide will help you understand the key differences between general liability and professional liability insurance so that you can make an informed decision for enhanced business security. What Is General Liability Insurance? General liability insurance is designed to protect your business from claims related to bodily injury, property damage, personal and advertising injury, and medical payments. These claims can arise due to accidents or incidents that occur on your business premises or as a result of your products or services. Without this coverage, you may have to bear significant financial and legal costs on your own. Key Coverage Areas: Bodily Injury & Property Damage: Covers third-party injuries or damages caused by your business operations. Personal & Advertising Injury: Provides protection against claims of defamation, copyright infringement, or invasion of privacy. Medical Payments: Covers the medical expenses of non-employees injured on your business property. However, general liability insurance does not cover claims related to professional services, which is where professional liability insurance comes in. What Is Professional Liability Insurance? Professional liability insurance, also known as errors and omissions (E&O) insurance, covers claims arising from mistakes in your professional services. This policy is essential for service-based businesses, such as consultants, architects, doctors, and

3. lawyers. If a client suffers financial loss due to your negligence, missed deadlines, or incorrect advice, this insurance will protect your business from costly legal actions. Key Coverage Areas: Negligence & Errors: Protects against claims due to mistakes or oversights in your services. Breach of Contract: Covers legal claims resulting from a failure to meet contractual obligations. Undelivered Services or Misrepresentation: Helps protect your business from financial liability when clients feel misled or underserved. General Liability vs. Professional Liability: Which One Do You Need? The decision between general liability and professional liability depends on the nature of your business. General liability is essential for almost all businesses to protect against accidents or damages. However, if your business involves providing professional services, advice, or expertise, professional liability insurance is equally important. In many cases, businesses may need both types of coverage for full protection. Protect Your Business with Spotlight Insurance To ensure your business is protected from all angles, it’s crucial to have insurance coverage that fits your specific needs. Spotlight Insurance Group can help tailor a business insurance package for you, ensuring you have both general liability and professional liability coverage at the most competitive rates. Contact us today to safeguard your business, or call us directly at 720.923.1500.