As a business owner understanding the differences and similarities between General Liability and Professional Liability is a key step in knowing what type of insurance you need to cover your business. You will realize that you need both the two insurance covers because they cover different aspects of the business. The important thing though is taking the right policy to cover the high risk that your business may face.
Every business, big or small faces liability risk however the type of liability changes depending on the type of services you offer your clients.
What is General Liability Insurance?
Every business needs general liability insurance. It covers and protects your business from claims involving;
- Physical injuries and property damage caused by your business, this can include employee accidents while they are working and injuries that may happen to a customer while in your premises
- Advertising injury that your business may cause by slandering another company
- Copyright laws, this is when your business uses another company’s work without crediting them.
A general Liability insurance will help you pay the finances for property damage claims against your business. It will also pay the hospital bills if anyone gets injured while at your premises. The General Insurance Liability will also pay for the courts and attorney fees from the claims against your business.
Any business, whether small or big should have this policy as a key pillar in protecting their business. A small business will find it hard recovering from the losses associated with the monetary claims because of how expensive they are.
What is Professional Liability Insurance Coverage?
As a professional in your field, errors are bound to happen even if you are an expert in the services you offer your clients. Professional Liability Insurance covers you from claims made by your clients for example if you offer advisory services a client may claim that the advice you gave them was misguided and led to failure of their business.
Good example of business that should take a Professional Liability Insurance include medical cannabis doctors and lawyers.
This insurance provides coverage for claims such, services not delivered, being sued for negligence and malpractice and also missed work deadlines. A law suit is expensive depending on how large your business is and a professional Liability Insurance cover protects your business from suffering huge losses.
Professional liability Insurance is given a different name depending on the profession, for example in medical field it’s called medical malpractice and errors and omissions in land agents’ field.
It is vital to note that Professional Liability Insurance doesn’t cover and pay everything for your business as a professional. This insurance won’t cover damage of property, employee or customer injury.
The Difference between General Liability and Professional Liability Insurance coverage
Here is how the two policies are different;
- The two policies don’t cover the same claims. Professional Liability Insurance will cover your business from damage of property, physical injury, advertising slander and copyright laws claims while the Professional Liability Insurance will cover and pay for lack of service delivery suit, negligence and missed work deadlines. This means that it is important to take the two insurance covers for your business. A law suit is expensive and it will leave your company bankrupt without any of these two insurances.
- Professional Liability insurance covers a business from malpractice that occurred from giving professional services while the General Liability Insurance covers the physical aspects of the business.
The Similarity Between General Liability and Professional Liability Insurance coverage
The two insurance covers have this similar factor below;
- They both cover business liabilities that are inevitable. The two policies work together to save your business from expensive law suits. The Professional Liability Insurance will save the professional aspect of the services you offer while the General liability Insurance will cover the physical part of your business.
As a business owner, understanding the risks that your business may face is an important step in knowing the ideal insurance cover to take. In order to be on the safe side, it is better to take both the General Liability and Professional Liability Insurance. It is good to know that it is hard for your business to recover from these law suits especially if you are a small business owner.
An important thing is to speak with an experienced insurance agent so that you can explain to them your business model and they will give you the best policy option.
You can always speak to one of our experts who are available to walk with you in every step of the journey.