Why Do I Need Professional Liability & General Liability 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, "What is Professional Liability Insurance (E&O)?"
Some examples of professionals who need this type of insurance include:
- 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.
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.
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