Why Do I Need Professional Liability & General Liability Insurance?

BUSINESS INSURANCE


Apr 25, 2021

Do I need to get both Professional & General Liability Insurance?

Getting an insurance policy can definitely be confusing, especially when you're starting a new business and are just starting to learn about Business Insurance. There are many types of insurance that you can get, and not knowing the differences or overlaps between each type of insurance can make the process even more dizzying. In this blog, we'll breakdown the importance of Professional Liability Insurance and General Liability Insurance and why it's important to have both.

What is Professional Liability Insurance?

Professional Liability is a type of insurance that's essential for businesses that provide specialized services. Professionals are expected to have technical knowledge of the services that they provide and are liable to be held to a higher level of accountability. If they fail to provide the expected level of work, then it can harm their customers financially, legally or even physically. In these cases, customers can sue such professionals for negligence on the job and for not being able to provide a particular threshold for the work that was assigned to them.

In the event a claim such as this was to arise, a Professional Liability policy could help professionals cover the costs related to a lawsuit and cover all defense and settlement costs.

Learn more, "Why do I need Professional Liability Insurance?"

Some examples of professionals who need this type of insurance include:

  • Accountants
  • Lawyers
  • Consultants
  • Real estate agent
  • Medical clinics
  • Technology experts
  • And so on

What is General Liability Insurance?

General Liability Insurance is a general type of insurance that protects a business from third-party bodily injury or property damage. It will also protect a business from advertising injury (for example, copyright infringement) or reputational damage. General Liability Insurance will cover all costs related to the lawsuit

Why do I Need Both Professional Liability Insurance and General Liability Insurance?

The main difference between Professional Liability Insurance and General Liability Insurance lies in the type of risks each type of insurance policy covers. General Liability covers more generic risks, such as third-party property damage or physical injury; while Professional Liability Insurance covers more nuanced risks, such as errors and omissions on the job. An example of that would be making a mistake or missing deadlines that affect the client’s reputation or causes them financial harm. If you are a professional who provides specialized services, you need a General Liability Policy to protect your business from general risks and a Professional Liability Insurance policy to protect you from risks on the job.

Learn more about "What is the Difference Between Commercial General Liability and Professional Liability (E&O)?"

Understanding all the different types of insurance that are available and, even more importantly, what types of insurance are necessary for your business may feel daunting, but seeking out the smartest insurance solution for your business is an extremely worthwhile pursuit. Here at Foxquilt, we know that every business is unique, and we can help review your business to provide you with a tailored quote, suited to your business’s needs. Get started on your online quote today.

RELATED POSTS
good-time-get-ecommerce-insurance-for-your-business

BUSINESS INSURANCE

Why is Now a Good Time to Get eCommerce Insurance for Your Business

With oncoming major shopping days like Black Friday and Cyber Monday, make sure to follow these eCommerce insurance tips for a safe, secure holiday shopping season.

Read More
how-to-prep-for-black-friday-cyber-monday-ecommerce-seller

BUSINESS INSURANCE

How to Prep For Black Friday & Cyber Monday as an eCommerce Seller

Foxquilt knows Black Friday & Cyber Monday are a busy time for small eCommerce sellers, so we have done the work for you and compiled a quick list of tips to keep you organized while making it successful!

Read More
do-you-need-to-have-workers-compensation-insurance

BUSINESS INSURANCE

Do You Need to Have Workers' Compensation Insurance?

The laws about workers compensation vary state by state as to who is required to carry workers’ compensation coverage and who might be exempt. Learn more about your state workers' comp regulations.

Read More

Sign up for our Mailing List

Get business insurance tips and updates straight to your inbox

Our online support team is available:
Monday to Friday: 8:00 AM - 8:00 PM (EST)
5:00 AM - 5:00 PM (PST)
We will try our very best to support you outside of our business hours
Copyright © 2022 Foxquilt. All Rights Reserved