In the last 25 years, small businesses generated a net 12.9 million new employment, according to the SBA.
If you own a business, you’re responsible for any injuries or damages your product may cause. That is why it’s so important to have a valid general liability and professional liability insurance policy. Not only will it protect you from losing a lawsuit, but it’ll help you pay for any settlements.
However, there are two major liability policies you need to understand. General liability vs professional liability, what are the differences between the two?
If you’re not sure what liability you might need, keep reading to learn everything there is to know.
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General Liability
General liability is a type of insurance that covers a business in case of any losses resulting from its operations. It will protect against claims of injuries to others and any damage done to another person’s property. Also, it will provide coverage for services rendered or products provided by the business.
This type of insurance will help protect a business from any claims. Some of these are commonly related to bodily injury, as well as property damage, and can be obtained at a reasonable rate.
Professional Liability
Professional liability is a form of insurance that can be taken out by professionals. These are doctors, lawyers, or accountants. It is to cover them for any malpractice that could cause damage to their clients.
This insurance covers the cost of defending against lawsuits and any settlements that may result. Also, this protects professionals from personal financial losses from claims made against them. The coverage can be very beneficial to those who have the potential to be sued for services rendered.
General Liability vs Professional Liability the Key Differences
The primary difference between the two lies in the types of risks they cover. General liability insurance deals with physical injuries, property damage, and personal injury claims. It is more general and covers accidents that could happen to anyone, regardless of their expertise.
But, professional liability insurance focuses on claims related to professional services rendered. It protects against claims of professional negligence in delivering promised results. This is more specific and targets professionals who provide specialized services.
Do You Need Both?
Whether you need both, it depends on the nature of your business. Many businesses find it beneficial to have both coverages for comprehensive protection.
For example, if you own a retail store, general liability insurance will safeguard you against accidents and property damage. But, if you also provide professional advice or services, the other one is perfect for you. It would protect you from claims arising from those specific activities.
For more information on both liability insurance, visit https://www.clearinsurance.net. They will provide insurance solutions tailored to your business needs.
Have the Best Liability Insurance Coverage Today
Overall, there are key distinctions between general liability vs professional liability. Knowing which one applies to you can be essential in determining the coverage you require to protect your business. For more information, consult your insurance company today to get the coverage you need.
Do you need more legal information? Check out more of our guides to learn all you can today.
