Professional Liability vs General Liability Coverage

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One of the most common questions business owners and professionals bring up in regards to professional liability is, “how is it different from general liability?” It may be easy for you to assume that if you have Commercial General Liability coverage, then your business is financially protected for any type of claim. However, this could be a detrimental mistake for you to make in regards to your business.

Whether you own a real estate agency, work as an independent attorney, or employ mortgage brokers, professional liability insurance will give you the financial protection you need. The reason for this is because professional liability insurance covers anyone who provides a service or advice for a fee. Many business professionals mistakenly believe that general liability is a “catchall” for liability exposure, and that perhaps professional liability just serves as “extra” protection, or is only needed for specialized businesses with bigger risks than their own.

You may hear Professional Liability insurance referred to as different types of policies; malpractice liability, Errors and Omissions (E&O), or Directors and Officers Liability, which is a whole entire coverage on its own. Whichever term you hear, they all relatively provide the same time of coverage, financial protection for claims of loss due to your neglect or error, even if only a perceived errors. In your career, you are hired for your expertise in your field and your clients will depend on that knowledge. Based on that knowledge, they may make decisions that can result in a loss or damage, of which you could be held personally responsible.

You are also expected, as a business professional, to perform the agreed services for which you were hired, and failing to do so could also cause you to be held liable for any harm caused to another person or business as a result. General liability coverage, on the other hand, will protect your business only from bodily injury, property damage, personal injury, or advertising injury. While this coverage is absolutely essential for your business, Professional Liability coverage is also vital.

At NewMark Insurance Services, we understand the unique risks you face as a business owner or professional. We offer professional liability coverages for a number of professions, including real estate, the legal industry, and insurance agents and brokers. To learn more about our Professional Liability policies as well as our other Business Insurance products, please contact us today at (855) 777-6549.

http://www.newmarkins.com/blog/professional-liability-versus-general-liability-coverage/

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