The Differencce Between Professional & General Liability

Professional and General Liability forms of insurance have become an increasingly important component in almost every business transaction. Managerial decisions to award contracts are often contingent upon the presence of professional liability insurance from a highly rated and financially stable insurance carrier. Many small business owners are not concerned or do not clearly know the difference between general liability and professional liability. In today’s litigation climate many owners truly need both liability forms to decrease their risk against a catastrophic financial claim. In a brief statement general liability's primary purpose is to cover claims caused from bodily injury or property damage resulting from a person or company's negligence. Whereas professional liability insurance's primary purpose is to cover claims caused by financial damages resulting from a negligent service that was performed. This is also commonly referred to as Errors and Omissions coverage. The major difference in the eye's of the policy holder is that professional liability stems from intellectual damages versus actual physical damage. Below is a great video that outlines the differences in real world events that many business owners can wrap their heads around. If you have further questions or would like The Insurance Loft to prepare a no obligation proposal please feel free to call us at 1-800-409-9790.


September 27, 2016
by Scott Ligouri