The Difference Between General Liability & Professional Liability
Insurance agents commonly get asked about the difference between General Liability and Professional Liability. While both insurance policy types are designed to protect businesses from liability arising out of fault, general and professional liability are very different in the types of risks that they cover.
Commercial general liability insurance protects a business and its employees from claims involving bodily injury or property damage, up to the limits of the policy. Claims can arise from bodily injury or property damages that result from accidents on your premises or from your business’s products, operations, or even advertising. However, it is very important to clarify operations, because this is where many people get confused.
General liability coverage for bodily injury or property damage will extend to a business’s operations, but usually only to the extent that it damages something ancillary to their operation. Meaning that if you are hired as an electrical contractor to rewire the electrical circuits in a building and subsequently the building burns down as a result of your mistake, the general liability would offer coverage for the building but would not cover the labor or materials that the contractor installed.
Additionally, business general liability insurance won’t cover a professional mistake. Any damages that occur as you offer your opinion, solution, service or recommendations through the course of business would not be covered under general liability but would instead need to be protected by professional liability insurance.
Professional liability covers negligence related to professional services or advice. It’s generally related to financial loss rather than physical injury or damages. This coverage is also commonly referred to as Errors & Omissions insurance, or E&O. A routine E&O claim would involve a professional such as a consultant who provided a client bad advice which resulted in a financial loss to the client. Nobody was injured but the consultant could still be sued and would need to file a claim with their professional liability carrier.
It’s important to protect your business against both general liability and professional liability. For detailed information pertaining specifically to your business, please contact a qualified Moore Resources insurance agent today.
Moore Resources is an Independent Insurance Agency located in St. Petersburg, FL and offering Homeowners Insurance, Auto Insurance, Personal Insurance and Business Insurance. Our reach extends beyond the Tampa Bay area to the entire state of Florida. Moore Resources has regionally been dedicated to serving the local residents of Pinellas, Hillsborough, Polk, Pasco, Manatee and Sarasota counties; including St. Pete, Tampa, Clearwater, Bradenton, Brandon, Dunedin, Gulfport, Lakeland, Largo, Lutz, Palm Harbor, Pinellas Park, Riverview, Ruskin, Seffner, Seminole, Temple Terrace, Tierra Verde, Town n Country, and the Gulf Coast Beaches.
The purpose of this blog is to present general information only. It does not interpret specific policies or coverage. In order to obtain detailed information regarding your insurance, contact a licensed insurance agent.