Call Us 281.395.5497 ☰ ˟
Manage Policy File a Claim
Logo
281.395.5497
877.868.8063
  • Home
  • Get A Quote
  • Personal
    • Personal Lines Home Page
    • Auto
    • Condominium
    • Farm
    • Flood
    • High Value Home
    • Home
    • Jewelry
    • Life
    • Motorcycle
    • Motor Home/RV
    • Off-Road Vehicles
    • Private Aviation
    • Rental Property
    • Renters
    • Specialty (Classic Collector) Auto
    • Personal Umbrella
    • Watercraft & Boat
  • Business
    • Business Insurance Home Page
    • Business Insurance Coverages
    • Business Insurance Industries
    • Employee Benefits
  • Our Carriers
  • Make A Payment
  • Client Center
  • Resources
    • Policy Review Request
    • Insurance Glossary
    • Frequently Asked Questions
    • Privacy Policy
    • Our Blog
    • Refer a Friend
    • Our Partners
  • About Us
  • Contact Us
    • Contact Us
    • Employee Directory
    • Location
Icon Icon Icon Icon Icon Icon
Home > Blog > Difference Between General and Professional Liability Insurance
TUESDAY, SEPTEMBER 7, 2021

Difference Between General and Professional Liability Insurance

Is general liability insurance and professional liability insurance the same thing? This is a common question because many business owners do not recognize the reasoning behind purchasing both forms. Both are liability insurance coverage, but there are slight differences that make a big difference. Here’s a closer look. insurance policy paperwork

They Have Similar Features 
Both professional liability insurance and general liability insurance protect against claims made against your business. They both work to reduce the financial burden your company would have to manage should someone file a lawsuit or a damage claim against the company. They both help to keep your business operational while compensating others in case of mistakes. 

In many cases, they can also be a requirement. Some clients may require that you have both forms of insurance to work with them. This is typical, for example, in government contracts. In that way, having both is important. 

What Makes Them Different, Then? 
The simple answer is that both policies cover different types of risks. Here’s a bit more of a comparison. 

Professional Liability: This form of liability insurance covers negligence related to the advice or professional service you provide. In this case, your “bad advice” or guidance may leave the client with financial loss. Typically, this type of insurance is necessary when you are giving any type of consultation or instruction to another person that may cause them financial loss later. 

General Liability Insurance: Here, the loss is more than just financial. This coverage helps protect against physical injury to a person. It can also apply to physical damage to property owned by the customer. It generally happens during the normal course of business. 

Consider a few examples. Let’s say a client comes into your business and requests that you install a window at their home. Your team does so. The window tumbles out of place, injuring someone at the home. In this case, the homeowner may file a general liability insurance claim for the poor workmanship that caused the injury. 

Perhaps you are a consultant for investors. You provide information that is not accurate or is otherwise flawed. Your clients file a lawsuit against you. Though they have no physical injury, the bad advice caused a loss of money for them.
 
Finding the right professional liability insurance and general liability coverage for your business is important. Work with a professional insurance agent who can help you navigate what’s right for your specific needs. 

Posted 5:18 PM

Tags: professional liability insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010

  • business insurance(79)
  • katy(73)
  • houston(54)
  • texas(48)
  • home insurance(36)
  • katy tx(28)
  • austin(28)
  • dallas(28)
  • san antonio(27)
  • brewery insurance(26)
  • restaurant insurance(24)
  • insurance katy tx(23)
  • distillery insurance(21)
  • growth(19)
  • commercial insurance katy tx(16)
  • small business insurance(15)
  • homeowners insurance(15)
  • tx(15)
  • manufacturing insurance(15)
  • craft brewery insurance(14)
  • business insurance katy tx(13)
  • home insurance katy(9)
  • manufacturing business insurance(9)
  • retail insurance(9)
  • insurance(8)
  • wholesalers business insurance(7)
  • houston business insurance(7)
  • business insurance katy(7)
  • wholesale business insurance(6)
  • craft beer insurance(6)
  • houston tx(5)
  • fort worth(5)
  • retail business insurance(4)
  • katy tx insurance(4)
  • commercial insurance katy(4)
  • commercial insurance(4)
  • workers compensation insurance(4)
  • home insurance katy tx(4)
  • wholesale insurance(4)
  • workers comp insurance(4)
  • cypress(4)
  • auto insurance(4)
  • the woodlands(3)
  • auto repair shop insurance(3)
  • flood insurance(3)
  • manufacturer's business insurance(3)
  • general liability insurance(3)
  • home insurance houston tx(3)
  • doctors office insurance(2)
  • directors and officers liability insurance(2)

View Mobile Version
Facebook
Twitter
Google+
LinkedIn
Get Directions
Contact Us Today
Contact Us Today
Resources
Get a Quote
Payment Options
Personal
Business
About Us
Our Blog
Our Carriers
Contact Us
Contact us 5503 4th St.
Katy, TX 77493

281.395.5497
info@ghfins.com
© Copyright. All rights reserved.