When seeking a comprehensive business insurance policy to protect your profession’s or company’s finances and reputation, you might be surprised to find there’s a wide variety of coverage options available.
Two of those are general liability insurance and professional liability insurance. Both are vital coverages for business owners and independent professionals, but they each cover different types of risks.
As the saying goes, knowledge is the best form of insurance. With that in mind, here’s a straightforward breakdown of each type of insurance:
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What Is General Liability Insurance?
General liability insurance covers a business owner’s financial losses caused by your company’s operations or on your premises, leading to third-party claims such as bodily injuries, property damages, and personal or advertising injury (i.e., defamation and copyright infringement).
For example, a customer that slips and falls on your property or area where you’re working and is hurt, accidental damage to someone else’s property caused by your operations, services, or products, or allegations of defamation (slander, libel), copyright infringement, and false advertising.
Who Needs General Liability Insurance?
General liability insurance is a fundamental coverage that almost every business or professional needs.
It’s worth noting general liability insurance typically includes product liability insurance to cover third-party bodily injury and property damage claims caused by any product you sell, distribute, or manufacture (including food).
General contractors, retail store owners, online sellers, restaurant and cafe owners, and personal trainers are examples of business owners who need general liability insurance.
What Is Professional Liability Insurance?
Also called errors and omissions (E&O) or malpractice insurance, professional liability insurance covers businesses and professionals providing services and advice.
It covers allegations and claims of professional negligence, errors or mistakes, omissions, and customer lawsuits claiming a financial loss caused by your services or advice.
For example, if a consultant makes a mistake that causes their client to suffer a financial loss.
Who Needs Professional Liability Insurance?
Any business or independent professional whose work involves specialized advice or services that could cause their customers financial losses should have professional liability insurance.
Accountants, bookkeepers, consultants, health and wellness professionals, software developers and IT specialists, and architects are examples of professionals who require professional liability coverage.
How to Get Low-Cost Business Insurance Right Now
Over 350,000 Canadian small business owners and independent professionals trust Zensurance to cover their risks with customized, low-cost business insurance, including general liability and professional liability insurance.
Fill out our online application for a free quote in less than five minutes.
Let our experienced team of insurance experts find the coverage you need from our partner network of over 50 insurance providers, advise you on the coverage limits, and tailor the policy to suit your specific requirements and budget.
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