General Liability vs. Professional Liability Insurance: Do You Need Both?
General and professional liability insurance protect against different business risks. You may need both.
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General liability insurance and professional liability insurance can both protect businesses in case of lawsuits. But they cover different types of risks:
- General liability insurance is for claims that say your business caused property damage or bodily injury.
- Professional liability insurance is for claims that your business made an error that cost your client money.
Many businesses need both policies. Here’s a breakdown of these two types of business insurance and how to get them.
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What general liability insurance covers
General liability insurance protects your business if you or your employees are accused of causing property damage, bodily injury or reputational harm. A landlord or general contractor might require you to have a general liability policy. We recommend it for all businesses.
These policies can cover legal and settlement costs in cases like:
- A customer trips on a loose floorboard in your store and suffers an injury.
- An employee backs into a customer’s car while making a delivery.
- A competing business accuses you of copyright infringement.
What professional liability insurance covers
Professional liability insurance is also known as errors and omissions insurance. It protects your business against lawsuits filed by dissatisfied customers who hold you responsible for their losses.
Professional liability insurance policies protect against claims like:
- Inadequate or inaccurate work.
- Bad advice.
- Missed deadlines or incomplete work.
- Negligence.
Do you need both types of coverage?
If you provide services to customers for a fee — as an accountant or financial advisor, for instance — you should get both professional liability insurance and general liability insurance. Certain professionals, including doctors and lawyers, may also be required by law to carry professional liability insurance. And all businesses should have general liability insurance.
If your work doesn't involve giving advice or doing work for specific clients, you probably only need general liability insurance.
Lots of businesses need other types of business insurance as well. That's especially true if you have employees or a business vehicle. Here's our list of all the types of business insurance.
Best companies for general and professional liability insurance
Most major commercial insurers provide both general liability and professional liability insurance. But they're usually two separate policies, not a package.
Save up to 30% on business insurance
NerdWallet Small Business helps you get real-time quotes from 30+ insurers, and instant access to your Certificate of Insurance (COI) through our partner, Coverdash.
General liability insurance is available on its own or as part of a business owner's policy. Get a BOP if you rent space or have inventory or equipment. The package includes general liability insurance along with commercial property insurance and business interruption insurance, which can protect your business in case of a fire, burglary or disaster.
Professional liability is usually sold on its own. But you can probably buy both policies at the same time.
» MORE: How to get business insurance
Where to get general and professional liability insurance
Want personalized, one-on-one help? Find an independent insurance agent. They can sell policies from several different insurers. As your agent learns more about your business, they can make coverage recommendations and get you several quotes to find the best price.
Need coverage as soon as possible? The following companies let you get a quote online and then buy your policy online or over the phone.
The Hartford
You can get a quote online from The Hartford, a century-old insurance company, for both general and professional liability insurance. Then an agent or insurance specialist will call you to finish the purchase process. That gives you an opportunity to ask questions about any specific risks your business faces and what other coverage you need. Read our review.
Ergo Next
Ergo Next sells common types of business insurance online. You can get a quote and buy a policy in just a few minutes. If you buy coverage, you can access your certificate of insurance online in real time and add additional insureds if you need to. Read our review.
biBerk
Berkshire Hathaway subsidiary biBerk is another online business insurance company. You can get a quote and buy a policy online, then manage claims from the same online dashboard. biBerk sells professional liability insurance in all 50 states and general liability insurance in around 30 states. Read our review.
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