Understanding Business Insurance Options

professional liability insurance vs general liability insurance

Business owners have a range of options when it comes to protecting their investments. There are risks inherent to owning and operating a business, but the right choice in coverage can minimize risks and potentially save thousands of dollars arising from lawsuits. Here are the differences in professional liability insurance vs general liability insurance.

Professional Coverage

With professional liability insurance, coverage is offered for the services rendered by a business. Also known as Errors and Omissions (E & O) Coverage, this option generally protects business owners from litigation that may arise when clerical errors or other unintentional acts occur that frustrate or damage client operations. Some policies include specific language indicating the insurer’s responsibly to provide or finance legal representation in the event of a lawsuit.

General Liability Coverage

Coverage from general liability insurance is often the first type of insurance purchased by business owners. A company is protected from litigation arising from general tort concerns often incurred through normal business operations. These may include bodily injury or harm, property damage, slander or libel and medical payments.

Choosing Coverage

When it comes to professional liability insurance vs general liability insurance, it’s helpful to know the detailed coverage options contained within a specific policy. No two policies are alike, making it difficult to narrow a singular option for insurance. Find a policy customized to your business needs, and make the choice based on coverage.


Insurance Risk Advisors