General Liability vs. Professional Liability Insurance: Key Differences
Summary
As every business and profession carries its own set of risks and responsibilities, understanding the features of these insurance offerings is critical to making informed decisions regarding protection against unforeseen circumstances. For example, if a customer sues a business for injuries sustained on their premises or due to a product, general liability insurance would come into play. Errors and omissions liability, on the other hand, specifically covers claims arising from professional negligence, mistakes, or failure to perform duties as per industry standards. If a client alleges financial loss due to incorrect advice or a mistake in a service, professional liability insurance steps in to handle the claim. The cost is influenced by factors such as location, industry, size of the business, number of employees, level of risk, and past claims history.