General Liability vs Professional Liability Insurance

General liability and professional liability insurance are both great investments in your company since they offer protections unique to the needs of your business.  However, they may also cover distinct types of lawsuits. Based on your business risks, you may need to purchase one or both policies.

General Liability

Let’s start with general liability. This category of insurance protects your company from basic lawsuits. In other words, any business whether small or large, possibly will need this type of protection. Coverage kicks in when a third party sues your business owner over matters such as bodily injuries sustained in your commercial premises, property damage, and advertising injuries.

General liability insurance covers the legal expenses linked to third-party lawsuits. These are expenses such as court costs, attorney’s fees, judgment or settlement. No matter what’s the size of your business, this a must-have policy since you may face these claims – many employers do.

Professional Liability

Also known as “omissions,” “errors,” or “malpractice” insurance, based on your industry, this policy covers lawsuits linked to the professional services offered. Every small business can benefit from this type of coverage as it shields the company from third-party lawsuits claiming the business offered careless professional services, made some errors or omissions, and failed to deliver contractual promises. These harms can be substantially costly for business owners, even if they aren’t at fault. An angry customer could simply name your business in a lawsuit trying to recover losses that may or may not be your fault. Professional liability helps cover related legal expenses whether the claim is legitimate or not.


General liability and professional liability are similar since they deal with inevitable liabilities, especially for a small business owner. Unfortunately, small business owners suffer more from the impact of civil lawsuits. So, general liability and professional liability are the perfect pair to help you mitigate the costs when an accident or oversight gets your business in legal trouble. Both policies may be required by client contracts to address any possible lawsuit.


General liability and professional liability will cover several risk exposures, but only general liability will cover incidents such as a slip and fall accident on your property. Likewise, only professional liability will protect you from the cost of professional mistakes caused by third parties. General liability insurance covers the physical aspects while professional liability focuses more on the financial aspects. A general liability policy may include product liability insurance, which protects your business from a lawsuit over a finished product that harms someone. Professional liability covers financial losses that come because of the services or products offered by your company.

Which policy is better?

Most businesses purchase general and professional liability, as they both provide protection for unexpected lawsuits. In some instances, you may only need one, but this is not advised. You never know what could happen. To explore your coverage options with the help of a licensed agent  request a quote here.



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