Do I need Professional Liability or General Liability Insurance? - Cherokee Insurance Center Skip to main content

Do I need Professional Liability or General Liability Insurance?

Blog - Liabilty Insurance with Business Man

When looking into insurance as a business owner, sometimes the differences in what General Liability Insurance and Professional Liability Insurance cover can be confusing. Essentially, one covers more of the physical aspects where the other is more professional mistakes or bad advice.

General Liability Insurance

General Liability Insurance is the coverage of the third-party or customer for either bodily injuries or damage to their property. Some coverages of General Liability insurance include:

  • Medical Payments
  • Bodily Injury
  • Property Damages
  • Personal Injury
  • Damage to Property Rented to you

Professional Liability Insurance

Professional Liability Insurance also known as Errors & Omissions (E & O Insurance) covers you from claims against you for either professional neglect, errors, or malpractice. Some professions that may need Professional Liability Insurance include:

  • Real Estate Agents
  • Attorneys
  • Counselors
  • Consultants
  • Accountants
  • Any profession that offers a service
Do I need Professional Liability or General Liability Insurance - General Liability Vs Professional Liability

Do I have to have Liability Insurance?

Some businesses that you are working with or signing a contract with will require either professional or general liability coverage. Either coverage, depending on what your business needs, is made to protect you should you have a lawsuit filed against you. A lot of times, one lawsuit could cause a business to go bankrupt.

In other words, having Professional Liability or Commercial General Liability insurance is a good idea. Not only does it protect you, it also can enhance your reputation as a respectable and responsible business. Customers are more likely to hire someone that has liability insurance to protect themselves. Make sure you protect yourself, your business, and your customers.