General Liability vs. Professional Liability: What’s the Difference?

Businesses in Lake Jackson and Bay City, TX face a variety of risks, and insurance can provide a financial safety net when the unexpected occurs. Two coverages that are often confused are general liability and professional liability. While they sound similar, they can provide financial protection against very different risks, and understanding the distinction can help you decide what your business may need.

General Liability Insurance

General liability insurance may help cover claims involving bodily injury, property damage, or advertising injury. For example, if a customer slips in your store or if an employee accidentally damages a client’s property during a service call, this coverage can help with medical bills or legal expenses. Many landlords or business partners also require proof of general liability insurance before entering into contracts.

Professional Liability Insurance

Professional liability insurance, sometimes called errors and omissions (E&O), focuses on the services your business provides. It may help financially protect against claims that your work caused financial harm due to mistakes, oversights or failure to deliver on promised services. For instance, if a consultant provides advice that results in a client’s loss, or if an accountant makes an error in reporting, this type of policy may help with legal defense and settlement costs.

Choosing the Right Coverage

Some businesses may only need one type of liability insurance, while others benefit from carrying both. For example, a law firm may need professional liability to cover legal errors but could also require general liability in case a client is injured on its premises.

The team at Best Insurance Services can review your operations and industry requirements to help you determine which liability coverage—or combination—best fits your needs in Lake Jackson and Bay City, TX. Contact us today to explore tailored solutions that may help safeguard your business.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.