General Liability vs. Professional Liability: What’s the Difference?

To protect your business from risks like lawsuits and claims, having the right insurance is crucial. General liability and professional liability insurance offer distinct types of financial protection, and knowing how they work can help you choose the right policy for your business needs.

What Is General Liability Insurance?

General liability insurance can help financially protect your business from claims involving the following:

• Third-party physical injuries

• Third-party property damage

• Personal and advertising injuries (e.g., defamation, claims of libel or slander)

This insurance can be fundamental for businesses operating in a physical location or those that interact directly with clients and the general public.

What Is Professional Liability Insurance?

Professional liability insurance can help financially protect your business from claims involving the following:

• Professional negligence

• Inaccurate advice

• Missed deadlines

• Failure to deliver services

This insurance is especially critical for service-based businesses, such as health care providers and consultants. If a client claims that your services caused them financial harm, professional liability insurance may help cover legal defense fees and related expenses you’re held liable for.

Which Insurance Do I Need?

Your business type greatly impacts which insurance coverage you need. If you have a storefront or regular, in-person contact with clients, general liability is crucial. If you provide specialized services or advice, you may need professional liability. Many businesses can benefit from carrying both insurance types, so it’s best to reach out to your insurance broker to determine what coverage best suits your business.

Contact Us

The professionals at Reinholdt & O'Harra Insurance in Ashland, OR can help you make sure you have the proper insurance for your business. Contact us today for more information or a personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.