General Liability vs. Professional Liability: What’s the Difference and Which Do You Need

When running a business, protecting yourself from potential lawsuits is crucial. General liability and professional liability insurance each offer distinct types of coverage, and knowing the difference between them is key to selecting the protection that best fits your business needs. 

Comparing General Liability Insurance and Professional Liability Insurance 

General liability insurance can help financially protect your business from claims involving physical injuries, property damage or issues like defamation. For example, if a vendor trips over equipment at your event and gets injured, this coverage can assist with medical expenses, legal representation and any resulting settlements. It’s a fundamental safeguard for businesses that engage with the public or operate in physical spaces. This type of insurance is essential for businesses with physical locations or those that interact directly with clients or the public. 

Professional liability insurance can help financially protect against claims of negligence, mistakes or failure to deliver professional services. This is especially important for service-based businesses such as consultants, accountants, architects and health care providers. If a client alleges that your advice or service caused them financial harm, professional liability insurance can help cover legal defense and damages. 

So, which do you need? The answer depends on your business type. General liability is a must if you operate a storefront or have frequent in-person interactions. If you provide specialized services or advice, professional liability is critical. Many businesses benefit from having both. 

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For insurance near you, contact Dan Pittman Insurance Agency. 

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.