When it comes to business insurance, few topics cause more confusion than general liability vs professional liability. Many business owners assume they’re interchangeable — but they protect against very different risks.
Understanding the difference between these two coverages can help you avoid costly gaps, reduce legal exposure, and ensure your business is properly protected.
What General Liability Insurance Covers
General Liability Insurance protects your business from physical and third-party risks that occur during everyday operations.
Common situations it covers:
- A customer slips and falls at your location
- You accidentally damage a client’s property
- Someone is injured because of your business operations
- Advertising or personal injury claims (libel, slander)
Key protection areas:
- Bodily injury
- Property damage
- Legal defense costs
- Settlements or judgments
Who it’s best for:
Nearly every business — especially those with physical locations, customer interactions, or on-site work.
Why it’s important:
Even minor accidents can result in expensive lawsuits. General liability acts as your first line of defense.
What Professional Liability Insurance Covers
Professional Liability Insurance (also known as Errors & Omissions insurance) protects businesses from service-related and performance-based claims.
Common situations it covers:
- A client claims your advice caused financial loss
- A service was delivered incorrectly or incompletely
- Missed deadlines or contractual disputes
- Allegations of negligence or mistakes
Key protection areas:
- Professional errors
- Failure to perform services
- Legal defense and court costs
- Settlements related to service disputes
Who it’s best for:
Service-based businesses, consultants, agencies, contractors, and professionals who provide advice or expertise.
Why it’s important:
Even highly skilled professionals can face claims — and legal defense alone can be costly, even if you did nothing wrong.
Which Businesses Need Both?
Many businesses actually need both general liability and professional liability coverage.
You likely need both if you:
- Interact with customers and provide professional services
- Work on client sites and offer advice or recommendations
- Operate as a consultant, contractor, or agency
- Offer customized services or deliverables
Example:
A marketing agency could face:
- A slip-and-fall claim at their office (general liability)
- A client claiming lost revenue due to campaign advice (professional liability)
Having only one policy could leave your business exposed.
Cost Comparison: General vs Professional Liability
Costs vary based on industry, business size, and risk level, but here’s a general comparison:
General Liability Insurance:
- Typically more affordable
- Often required by landlords or contracts
- Cost depends on foot traffic, location, and operations
Professional Liability Insurance:
- Cost depends on services provided
- Higher risk industries pay more
- Coverage limits and claims history affect pricing
In many cases, bundling policies can reduce overall costs while improving protection.
Get the Right Coverage for Your Business
Choosing between general liability and professional liability — or deciding whether you need both — doesn’t have to be complicated.
Compare coverage options with an expert — get a free quote.
We’ll review your business, explain your risks clearly, and help you choose coverage that fits your needs without overpaying.
👉 Get a Free Insurance Quote