What’s the Difference Between General Liability and Professional Liability Coverage?

Business owners in Garland, TX may come across both general liability and professional liability insurance when evaluating coverage options. While both can help manage business risks, they apply to different types of claims. One Choice Insurance can help you determine which coverage fits your needs.

General Liability Insurance: Addressing Physical Risks

This type of policy covers common business accidents and third-party claims. If an on-site injury or property damage occurs, this policy may assist with expenses. Standard policies often include:

• Bodily injury coverage may help offset medical costs and legal fees if someone is injured due to your operations.
• Property damage coverage may assist with the costs of repairing or replacing third-party property after an accident you caused.
• Personal and advertising injury coverage may apply to claims for libel, slander, or copyright issues arising from marketing.

Professional Liability Coverage: Designed for Service-based Work

Also known as errors and omissions (E&O) insurance, professional liability coverage generally addresses claims arising from the quality of your work and advice. It can assist if allegedly inadequate services cause a client’s financial loss. This can provide coverage for the following:

• Negligence: This coverage can assist with claims involving failures to meet industry standards.
• Misrepresentation: This policy may apply if a client alleges you provided inaccurate information.
• Inaccurate advice: It can also cover client financial losses resulting from your guidance.

Which Coverage Does Your Business Need?

Many businesses can benefit from carrying both policies. General liability covers physical damages, while professional liability addresses counsel and service outcomes. For instance, a contractor may need general liability if equipment breaks a window and can require professional liability if a design flaw causes structural defects. Coverage costs can vary depending on industry, business size and risk profile.

We Can Help Texas Residents

Contact One Choice Insurance today to learn more about your insurance options and get a free 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.