Comparing Commercial General Liability And Professional Liability Insurance

​Beyond the inherent risks of entrepreneurship, one of the critical responsibilities for any business owner is selecting the right insurance policy for their company. General liability and professional liability insurance offer protection against common small business risks but cater to different types of litigation. Depending on your specific risks, you may require one or both.

Understanding the Difference Between General Liability and Professional Liability
General liability and professional liability serve as shields against distinct potential risks in business. General liability primarily covers physical injuries, while professional liability addresses financial losses incurred by clients or customers.

General Liability Insurance and Its Coverage
General liability insurance can come to the rescue if, for instance, a visitor trips and falls at your commercial space.

General liability insurance helps cover:

• Claims for bodily injuries
• Legal expenses related to lawsuits
• Medical bills resulting from injuries
• Property damage claims
• Defamation claims
• Advertising errors or omissions

Who Should Consider General Liability Insurance?
General liability insurance is a wise investment for small business owners, as it provides protection against common business-related hazards.

Factors Influencing Your General Liability Insurance Rate
Understanding the factors that influence your insurance rate is crucial. Here are some elements that may impact your insurance premium:

• Type of business
• Duration of your business
• Business location

Professional Liability Insurance and Its Coverage
Professional liability insurance, also known as errors and omissions insurance or malpractice insurance, typically covers lawsuits stemming from allegations of negligent professional services.

Professional liability insurance shields you from:

• Mistakes made in your professional work
• Failure to fulfill contractual obligations
• Providing subpar or inadequate services
• Acts of negligence

Who Should Consider Professional Liability Insurance?
While professional liability insurance may be legally required in some states, it is essential for businesses that deal with clients or customers. Examples of businesses that benefit from professional liability coverage include law practices, tax preparers or accountants, IT consultants, and home inspectors.

Factors Influencing Your Professional Liability Insurance Rate
The cost of errors and omissions insurance can vary based on factors such as:

• Business profits
• Number of employees
• History of past lawsuits
• Years of experience in your field
• The nature of your business operations
• Choosing the Right Insurance for Your Business

To safeguard your business against unexpected claims, it's often advisable to have both general liability and professional liability insurance. Being prepared is the key to protecting your business. Gain a deeper understanding of your insurance needs by completing an online insurance application.

​At Kapasu Insurance Services Inc., we aim to provide comprehensive insurance policies that make your life easier. We want to help you get insurance that fits your needs. Get in touch with our company at (760) 995-3853 to learn more about our offerings. Today, by CLICKING HERE, you may get a free estimate.

Disclaimer: The information presented in this blog is intended for informational purposes only and should not be considered as professional advice. It is crucial to consult with a qualified insurance agent or professional for personalized advice tailored to your specific circumstances. They can provide expert guidance and help you make informed decisions regarding your insurance needs.​