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General Liability vs. Professional Liability: What’s the Difference?

If you own a business, you’ve probably heard the terms general liability and professional liability tossed around — sometimes interchangeably. The truth is, they cover very different risks, and confusing the two can leave your business exposed when it matters most.

Here’s a simple breakdown of what each policy does, who needs it, and why many businesses actually need both.

👉 Not sure which coverage applies to your business? LG Insurance Agency can review your operations and provide a tailored quote so you’re protected from the right risks — not just the obvious ones.

What Is General Liability Insurance?

General liability insurance protects your business from physical and property-related claims that can happen during everyday operations.

It typically covers:

  • Bodily injury (someone slips and falls at your office or job site)

  • Property damage (you damage a client’s property)

  • Medical payments

  • Advertising or personal injury claims (libel, slander, copyright issues)

Example:
A client trips over a loose cord in your office and gets injured. General liability helps cover medical bills and legal costs.

This coverage is often required:

  • To sign leases

  • For vendor agreements

  • Before working with certain clients

What Is Professional Liability Insurance?

Professional liability insurance (also called Errors & Omissions or E&O) covers claims related to your expertise, advice, or services.

It typically covers:

  • Alleged mistakes or negligence

  • Failure to deliver services as promised

  • Financial loss caused by professional advice

  • Defense costs, even if the claim is unfounded

Example:
A client claims your recommendation caused them a financial loss. Even if you did nothing wrong, professional liability helps cover legal defense costs.

This coverage is especially important for:

  • Consultants

  • Real estate professionals

  • Insurance agents

  • IT and technology firms

  • Accountants, architects, and designers

The Key Difference (In Plain English)

  • General liability = physical things

  • Professional liability = professional decisions

One protects against accidents. The other protects against accusations.

Do You Need Both?

In many cases, yes.

General liability does not cover:

  • Bad advice

  • Missed deadlines

  • Professional errors

Professional liability does not cover:

  • Slip-and-fall injuries

  • Property damage

  • General business accidents

Relying on just one policy can create dangerous gaps — especially as your business grows or takes on new clients.

How LG Insurance Agency Helps

Every business is different. Coverage needs vary based on:

  • Industry

  • Size of business

  • Client contracts

  • Risk tolerance

At LG Insurance Agency, we help business owners understand where their real exposure is — and build coverage that actually fits how they operate.

👉 Contact LG Insurance Agency today to get a quote or review your current business insurance. A quick conversation now can prevent costly surprises later.

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