Operating a business can have many risks and liabilities. Choosing the right insurance package for your business can save money if damages are sustained either by your business or customers of your business. Here are some important factors to consider when comparing professional liability insurance vs general liability insurance.
General Liability Insurance
General liability insurance can cover your responsibility if someone other than an employee of your business is injured while on the premises. If a visitor at your business slips and falls, general liability insurance can pay for medical bills and can cover any legal expenses and settlements if the individual was to sue your company. It can also cover any damages to personal property caused by your business, but it may not cover your business property.
Professional Liability Insurance
Professional liability insurance can also be referred to as errors and omissions coverage or malpractice insurance. It can protect your business and your profession if you, or someone working for you, are accused of causing financial harm to a customer by either making a mistake or being negligent in carrying out the job. Like general liability coverage, it can pay legal fees and settlements related to the claims.
When considering professional liability insurance vs general liability insurance, business owners may need to look at the types of business they own. Businesses that have exposure to the public and provide professional services, such as carpentry, healthcare, real estate, financial planning and counseling may benefit from having both a professional liability policy and a general liability policy.