Important Differences Between General and Professional Liability Insurance

In today’s volatile business environment, many companies assume they only need a basic General Liability insurance policy for adequate coverage. This is
actually a huge misconception and could potentially leave you and your business
vulnerable to risks.

The concrete differences between what a General Liability and a Professional Liability policy cover are summarized below.

General Liability policies can cover the following types of
exposures:

§ Liability associated with slips and falls

§ Bodily Injury & Property Damage

§ Products and Completed Operations

§ Personal and Advertising Injury

§ Libel and slander

§ Owner’s and Contractors Protective (OCP)

Professional Liability policies can cover the following types of
exposures:

§ Claims relating to  the
delivery or non-delivery of professional services

§ Errors and omissions

§ Directors and Officers Liability

§ Unfair business practices

§ Copyright or intellectual property infringement

§ Cyber theft/Privacy/Network Security Breaches

§ Commercial Crime

§ Employment Related Issues

§ Fiduciary Services

The liability risk associated with your company’s professional
errors, omissions and negligence can be far greater than those of a standard
general liability policy. Legal costs relating to professional exposures can be
in the hundreds of thousands of dollars, even if the claim is baseless, so covering
the costs of a legal defense could end up bankrupting your company.

Standards, regulations and legal precedents governing industries
are constantly changing; so you may be brought into a suit for actions that were
acceptable at the time, but are no longer prudent business practices. This type
of coverage is a critical part of risk management programs for any professional
organization. Knowing what type or level of protection your business needs can
be confusing – it’s best to consult with a licensed insurance agent/broker so
they can help you better define your coverage needs.

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