General vs Professional Liability Insurance

General vs Professional Liability Insurance

All insurance serves to cover clients for various financial disputes they could face in their personal lives or in the workplace. Whether you are in a car accident or receive a malpractice claim, insurance helps you avoid financial ruin. When looking for insurance, you should know how to differentiate between policy types. Here is the difference between general vs professional liability insurance.

What Is General Liability Insurance?

As the name implies, general liability insurance is a broader form of insurance compared to the professional type. Typically, general liability insurance covers a business or corporation from physical risk and property damage liabilities. When bodily injuries occur on your premises or you cause damage to another person’s property, people can file a claim against you. Depending on your industry, these policies can cover you for injuries as well as slander and copyright infringement.

What Is Professional Liability Insurance?

Professional liability insurance hits closer to the personal side of insurance rather than the corporate. This insurance type covers risks such as negligence and malpractice in delivering your services. Claims in this realm typically revolve around a physical injury or financial loss. For example, medical malpractice insurance for dentists is a professional dental liability insurance policy that covers malpractice and negligence claims.

How Do I Choose?

One company or person may choose to have both general and professional liability insurances. Since they cover different scenarios, it is up to you to choose the insurance you want. If you choose general liability insurance, you are protecting your business from broader issues in business operations. However, if you choose professional liability insurance, you are protecting yourself from errors and omissions in your own services. It may be wise to have your own professional policy while leaving the general one to your employer. If you are a business or practice owner, try taking policies out for both in order to cover all your bases.

Know the difference between general vs professional liability insurance so you can adequately protect your business and personal assets. If you have any questions about these insurance types or would like to find the right policy for your situation, reach out to our insurance professionals at Baxter & Associates today.

top